Which of the following accounts could have a non-zero balance on a post-closing trial balance?
A)Dividends Declared
B)Premium on Bonds Payable
C)Income Tax Expense
D)Interest Expense

Question

Quizplus · Accepted Answer

Premium on Bonds Payable is a contra-liability account that has a credit balance. It represents the excess amount received by the company over the face value of the bonds issued. This account is not closed at the end of the accounting period and therefore may have a non-zero balance on the post-closing trial balance. The other accounts listed, Dividends Declared, Income Tax Expense, and Interest Expense, are all temporary accounts that are closed at the end of the accounting period and would have a zero balance on the post-closing trial balance.

Which of the Following Accounts Could Have a Non-Zero Balance