ACCT 301 - Intermediate Accounting I Spring 2002
Chapter 3 quiz study questions
1. Define/describe the following: (obj.1)
event
transaction
real account
nominal account
general ledger
subsidiary ledger
journal
posting
trial balance
adjusted trial balance
post-closing trial balance
adjusting entry
balance sheet
income statement
cash flows statement
statement of retained earnings
closing entry
2. Identify the normal balance for each account type: Asset, Liability, Equity, Revenue, Expense.
(obj.2)
3. What is the purpose of adjusting entries? At what point in time are adjusting entries
prepared? (obj.5)
4. What purpose does adjusting entries for prepayments serve? (obj.5)
5. What purpose does adjusting entries for accruals serve? (obj.5)
6. What is the purpose of the adjusted trial balance? (obj.5)
7. What is the purpose of the closing process? (obj.6)
