An Error Has Occurred in the Closing Entry Process If

question 69

Multiple Choice

An error has occurred in the closing entry process if

• A) revenue and expense accounts have zero balances.
• B) the retained earnings account is credited for the amount of net income.
• C) the dividends account is closed to the retained earnings account.
• D) the balance sheet accounts have zero balances.

Understand the concept of a ledger and its role in the accounting cycle.

Calculate account balances and changes therein based on transaction information.

Assess financial leverage and its implications for risk and debt management.

Understand the process and regulations surrounding the private placement of securities.