An Error Has Occurred in the Closing Entry Process If

question 26

Multiple Choice

An error has occurred in the closing entry process if

• A) all the revenue and expense accounts have zero balances.
• B) the Owner's Capital account is credited for the amount of profit.
• C) the Owner's Drawings account is closed to the Owner's Capital account.
• D) all the balance sheet accounts have zero balances.

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Definitions:

Development of Language

Refers to the process by which humans acquire the capacity to perceive, produce, and use words to understand and communicate.

Bounded Rationality

The concept that decision-making is limited by the information available, cognitive limitations of the mind, and the time available to make the decision.

Mental Shortcuts

Cognitive strategies or heuristics that the mind uses to make decisions or judgments quickly.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how well something matches with stereotypes or prototypes in one's mind.