An Error Is Indicated If the Following Account Has a Balance

question 238

Multiple Choice

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

• A)Office Equipment
• B)Accumulated Depreciation-Office Equipment
• C)Depreciation Expense-Office Equipment
• D)Common Stock
• E)Salaries Payable

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Definitions:

Yield to Maturity

The anticipated full income on a bond, provided it is held through to its expiration date.

Interest Rate Risk

The risk of losing money on investments because of changes in interest rates.

Zero Coupon Bond

A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.

Current Yield

The current yield is a financial metric that calculates the annual income (interest or dividends) an investment generates, divided by its current price.