It Is Obvious That an Error Occurred in the Preparation

question 292

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 Retained earnings 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:

Organization Chart

An organization chart is a diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Major Subunits

The primary or most significant divisions, departments, or components within an organization.

Matrix Structure

An organizational layout that combines two or more types of structures, typically functional and product-based, to leverage benefits of both.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise, working together towards a common objective.