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:

Customer Dissatisfaction

Refers to the state when customers' expectations are not met by the products or services provided, leading to a possible decline in loyalty and business.

Warranty

A guarantee provided by a manufacturer or vendor regarding the condition of its product and a promise to repair or replace it within a specified time frame if it's found to be defective.

Maintenance Costs

The expenses involved in keeping equipment, facilities, or assets in working condition, including repairs and preventive measures.

Manufacturing-Based Definition

A viewpoint defining quality primarily as adherence to specifications and reducing variances from manufacturing processes.