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 answers are acceptable.

Question

Quizplus · Accepted Answer

Premium on bonds payable represents the excess of the amount received from issuing bonds over the face value of the bonds. This is recorded as a liability on the balance sheet and will have a non-zero balance on the post-closing trial balance. Dividends declared and income tax expense are both temporary accounts that are closed to retained earnings at the end of the accounting period, resulting in a zero balance on the post-closing trial balance. Choice D is incorrect as there can be several accounts with non-zero balances on a post-closing trial balance, such as assets, liabilities, and equity accounts that are not closed at the end of the accounting period.

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