It Is Obvious That an Error Occurred in the Preparation

question 80

Multiple Choice

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

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

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Definitions:

Inventory Holding Cost

Expenses related to storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Subcontractingcost

The expense incurred when a business hires outside contractors to perform tasks that could be done internally or as part of a project.

Inventory Holding Cost

Inventory holding cost refers to the total cost associated with storing unsold goods or materials, including warehousing, depreciation, insurance, and obsolescence costs.

Subcontracting

The practice of assigning part of the obligations and tasks of a contract to another party, often to specialize or expedite processes.