It Is Obvious That an Error Occurred in the Preparation

question 13

Multiple Choice

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

• A) all revenue and expense accounts have zero balances.
• B) the owner's capital account is debited for the amount of the net loss for the period.
• C) the income summary account is debited for the amount of net income for the period.
• D) all balance sheet accounts have zero balances.
• E) only permanent accounts appear on the post-closing trial balance.

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Definitions:

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The manner in which a nation's economy functions, encompassing aspects such as production, distribution, and consumption of goods and services.

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Railroad lines that cross a continent, facilitating long-distance travel and transportation of goods across vast distances.

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A war between groups within the same country or state, often rooted in political, ethnic, or social differences.