Week 1 Chapter 3

Question 1

Real Accounts

Answer 1

Permanent accounts that carry over between reporting periods. Includes all BS accounts.

Question 2

Nominal Accounts

Answer 2

“Temporary” accounts that are typically closed at the end of a reporting period. Includes all Income Statement accounts, and Dividends.

Question 3

Normal Credit Balance

Answer 3

Accounts that increase with a credit

Revenue, Liability, and Equity accounts

Question 4

Normal Debit Balance

Answer 4

Accounts that increase with a debit

Expense and Asset accounts

Question 5

2 Adjusting Entry Types

Answer 5

Deferrals, Accruals

Question 6

What is used as the source for financial statement preparation?

Answer 6

Adjusted Trial Balance

Question 7

Account to which revenue and expense accounts are closed

Answer 7

Income Summary Account

Question 8

4 Financial Statements, in proper preparation sequence

Answer 8

1. Income Statement
2. Retained Earnings Statement
3. Balance Sheet
4. Statement of Cash Flows