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 drawings 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, such as assets, liabilities, and owner's equity accounts should not have a zero balance at the end of the closing entry process. If they do, it indicates that an error has occurred in the process. This could be due to improperly recorded adjusting entries or incorrect closing entries. Therefore, only option D is the correct answer.

An Error Has Occurred in the Closing Entry Process If