It Is Obvious That an Error Occurred in the Preparation

question 109

Multiple Choice

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

• A) only permanent accounts appear on the post-closing trial balance.
• B) all balance sheet accounts have zero balances.
• C) the income summary account is debited for the amount of net income for the period.
• D) the owner's capital account is debited for the amount of the net loss for the period.
• E) all revenue and expense accounts have zero balances.

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Definitions:

External Equity

The fairness of an organization's pay rates in comparison to what other employers are paying for the same type of labor in the market.

Wage and Salary Surveys

Research conducted to gather and analyze information on compensation practices across different organizations or industries.

Factor Comparison Method

A systematic technique for evaluating job positions by comparing them based on key factors such as skills, responsibilities, and working conditions, to determine appropriate compensation.

The Point Method

A technique used in job evaluation that assesses jobs on the basis of a series of factors that are each given a point value.