An Error Is Indicated If the Following Account Has a Balance

question 85

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) Ted Nash, Capital
• E) Salaries Payable

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Definitions:

Operating Activities

Operating activities involve the day-to-day functions of a business directly related to its provision of goods and services.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Cash Dividends

The distribution of profits by a corporation to its shareholders in the form of cash.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing activities.