Use the following as a self-check while working through Chapter 3.
- What is the GAAP principle of timeliness?
- What is the GAAP principle of matching?
- What is the GAAP principle of revenue recognition?
- What are adjusting entries and when are they journalized?
- What are the five types of adjustments?
- Why is an adjusted trial balance prepared?
- How is the unadjusted trial balance different from the adjusted trial balance?
- What are the four closing entries and why are they journalized?
- Why is the Dividends account not closed to the income summary?
- When is a post-closing trial balance prepared?
- How is a post-closing trial balance different from an adjusted trial balance?
NOTE: The purpose of these questions is to prepare you for the concepts introduced in the chapter. Your goal should be to answer each of these questions as you read through the chapter. If, when you complete the chapter, you are unable to answer one or more the Concept Self-Check questions, go back through the content to find the answer(s). Solutions are not provided to these questions.