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.

Question

Quizplus · Accepted Answer

All balance sheet accounts should not have zero balances after closing entries; only temporary accounts should be zeroed out.

It Is Obvious That an Error Occurred in the Preparation