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Questions and Answers
Which type of accounts are considered real (permanent) accounts?
Which type of accounts are considered real (permanent) accounts?
- Liability, equity, and dividend accounts
- Revenue, expense, and dividend accounts
- Asset, revenue, and expense accounts
- Asset, liability, and equity accounts (correct)
What kind of events are generally the source or cause of changes in assets, liabilities, and equity?
What kind of events are generally the source or cause of changes in assets, liabilities, and equity?
- External events only
- Non-financial events
- External or internal events (correct)
- Internal events only
What is the purpose of periodically closing nominal accounts?
What is the purpose of periodically closing nominal accounts?
- To ensure nominal accounts remain open indefinitely
- To transfer balances to real accounts (correct)
- To keep track of asset changes
- To prepare financial statements
What does a ledger contain?
What does a ledger contain?
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Why are real accounts sometimes referred to as permanent accounts?
Why are real accounts sometimes referred to as permanent accounts?
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What is the purpose of a subsidiary ledger?
What is the purpose of a subsidiary ledger?
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When are adjusting entries typically made in accounting?
When are adjusting entries typically made in accounting?
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What is the primary purpose of a post-closing trial balance?
What is the primary purpose of a post-closing trial balance?
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In accounting, what does it mean when an account shows a debit balance?
In accounting, what does it mean when an account shows a debit balance?
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What is the purpose of closing entries in accounting?
What is the purpose of closing entries in accounting?
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