An error has occurred in the closing entry process if
A) revenue and expense accounts have zero balances.
B) the retained earnings account is credited for the amount of net income.
C) the dividends account is closed to the retained earnings account.
D) the statement of financial position accounts have zero balances.

Question

Quizplus · Accepted Answer

Statement of financial position accounts (assets, liabilities, and equity) should not have zero balances after closing entries, as they are not temporary accounts. Only temporary accounts like revenues, expenses, and dividends are closed.

An Error Has Occurred in the Closing Entry Process If