It Is Obvious That an Error Occurred in the Preparation

question 13

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 owner's capital 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:

Dependency Theory

A theory in economics and political science that suggests countries can become dependent on more developed economies, resulting in a persistent state of underdevelopment.

Multinational Corporations

Large companies that operate and provide services or goods in multiple countries beyond their country of origin.

World Economic System

Refers to the global network of economic activities, including trade, finance, and production, that interconnects the world's economies.

Second World War

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, marked by significant battles, genocide, and the eventual defeat of Axis powers.