An error has occurred in the closing entry process if
A) revenue and expense accounts have zero balances.
B) the owner's capital account is credited for the amount of net income.
C) the owner's drawing account is closed to the owner's capital account.
D) the balance sheet accounts have zero balances.

Question

Quizplus · Accepted Answer

The balance sheet accounts should have balances after the closing entries have been completed. If they have zero balances, it may indicate that an error has occurred in the closing entry process. A, B, and C are all correct procedures for the closing entry process, so they do not indicate an error has occurred.

An Error Has Occurred in the Closing Entry Process If