Asked by Alessandro Godina on Jun 26, 2024
Verified
Which of the following accounts showing a balance on the post-closing trial balance indicate an error?
A) Office Equipment.
B) Accumulated Depreciation-Office Equipment.
C) Depreciation Expense-Office Equipment.
D) Retained earnings.
E) Salaries Payable.
Post-Closing Trial Balance
A trial balance prepared after closing entries are made, showing the balances of ledgers that remain for the start of the next period.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against an asset since its purchase.
Depreciation Expense
Methodically dispersing the cost of a physical asset over its serviceable lifetime.
- Detect mistakes in post-closing trial balances and comprehend the procedures to amend them.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
Depreciation Expense-Office Equipment should not show a balance on the post-closing trial balance because expense accounts should have been closed to Retained Earnings at the end of the accounting period.
Learning Objectives
- Detect mistakes in post-closing trial balances and comprehend the procedures to amend them.