GB 518 Course Great Wisdom / tutorialrank.com GB 518 Course Great Wisdom / tutorialrank.com | Page 12

Question 19. Question :

A classified balance sheet:

Measures a company's ability to pay its bills on
time

Organizes assets and liabilities into important
subgroups

Presents revenues, expenses and net income

Reports operating, investing and financing
activities

Reports the effect of profit and dividends on
retained earnings

Question 20. Question :
The special account used only in the
closing process to temporarily hold the amounts of revenues and
expenses before the net difference is added to (or subtracted from)
the retained earnings account is the: