What does (and doesnt) the trial balance prove? What about the adjusted trial balance? The post-closing trial balance?

Where do accountants first record transactions? Given information from a transaction, can you determine which accounts would be debited or credited? How many accounts must be affected inany transaction? What is a compound entry?

What is an adjustment (adjusting entry) and why are they necessary? Explain the differencebetween depreciation expense and accumulated depreciation accounts. Which is likely to bedebited or credited to record depreciation? Given information concerning common situations thatmight require adjusting entries, can you determine which accounts are likely to be debited and/orcredited to record those adjustments?

When might adjusting entries and/or closing entries be made? What are temporary and/orpermanent accounts and which are you likely to find in the balance sheet or the income statement?

What is the income summary account? Is it a temporary or permanent account? When/why is itused? Are recording and posting closing entries a necessary step in the accounting cycle? Do youknow what accounts would be debited or credited in the closing process? After closing all necessaryaccounts to the income summary account, would a debit (or credit) balance in the income summaryaccount represent income or loss?