An error has occurred in the closing entry process if
A) the revenue and expense accounts have zero balances.
B) the owner's capital account is credited for the amount of profit.
C) the owner's drawings account is closed to the owner's capital account.
D) the balance sheet accounts have zero balances.

Question

Quizplus · Accepted Answer

Balance sheet accounts should not have zero balances after the closing entries because these accounts (assets, liabilities, and equity) carry their balances forward into the next accounting period. Closing entries specifically target revenue, expense, and drawings/dividends accounts to reset their balances to zero for the new accounting period.

An Error Has Occurred in the Closing Entry Process If