An error has occurred in the closing entry process if
A) all the revenue and expense accounts have zero balances.
B) the Owner's Capital account is credited for the amount of profit.
C) the Owner's Drawings account is closed to the Owner's Capital account.
D) all the balance sheet accounts have zero balances.

Question

Quizplus · Accepted Answer

The closing entries should result in zero balances for all temporary accounts such as revenue and expense accounts, but balance sheet accounts should not have zero balances as they are permanent accounts. Therefore, if all balance sheet accounts have zero balances, there must have been an error in the closing entry process.

An Error Has Occurred in the Closing Entry Process If