Discussion Post
• Explain briefly the items generally included in a company's annual report.
• Discuss the relationship among the income statement, the statement of retained earnings, and the balance sheet.
• Identify several items that may required disclosure in the notes that accompany financial statements.
• What type of account are referred to as temporary or nominal accounts? What is meant by these terms?
• What type of accounts are referred to as permanent or real accounts? What is meant by these terms?
• Explain why the dividends account is closed directly to the retained earnings account.
• Which accounts appear in a company's after-closing trail balance? How do these accounts differ from those reported in an adjusted trial balance?
• Can a company be profitable but not liquid? Explained.
• How does depreciation expense differ from other operating expenses?
• Explain the need for closing entries and describes the process by which temporary owners' equity accounts are closed at year-end.
• Explain the significance of measuring a company's return on equity.
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.