An Error Has Occurred in the Closing Entry Process If

question 74

Multiple Choice

An error has occurred in the closing entry process if

• A) revenue and expense accounts have zero balances.
• B) the owner's capital account is credited for the amount of net income.
• C) the owner's drawings account is closed to the owner's capital account.
• D) the balance sheet accounts have zero balances.

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Definitions:

Budgeted Production

The total amount of products that a company plans to produce over a certain period, according to its budget.

Finished Goods Inventory

The total value of products that are completed and ready for sale but have not yet been sold.

Budgeted Unit Sales

The number of units a company plans or expects to sell over a certain period, as estimated during the budgeting process.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been distributed or delivered to customers.