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:

Price Level

A measure of the average of all prices in an economy, indicating the cost of goods and services at a specific time.

Interest Rate

A percentage of a loan amount charged by the lender to the borrower for the use of money.

Money Supply

The grand total of all economic assets measured in currency available at a specific time in an economy, which covers coins, banknotes, and the balances in checking and savings accounts.

Money Supplied

The entire sum of assets in terms of money present within an economy at a given time.