Which one of the following can have a non-zero balance on a post-closing trial balance?
A)Dividends declared
B)Premium on bonds payable
C)Income tax expense
D)None of the above.

Question

Quizplus · Accepted Answer

The premium on bonds payable is a contra-liability account and represents the excess amount paid by the issuer of the bonds over the face value of the bonds. Since this amount is amortized over the life of the bonds, it can have a non-zero balance on a post-closing trial balance. Dividends declared and income tax expense are both temporary accounts that are closed at the end of the accounting period and therefore would not have a balance on a post-closing trial balance.

Which One of the Following Can Have a Non-Zero Balance