Explain whether an error has occurred if a post-closing trial balance includes a Depreciation Expense account.

Explain whether an error has occurred if a post-closing trial balance includes a Depreciation Expense account.

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Expert Solution

Step 1: Definition of post-trial balance

Post-closing trial balance is prepared after trial balance it contains only permanent accounts.

Step 2: Error in the post-closing trial balance

Yes, an error has occurred in the post-closing trial balance when it includes the depreciation expense account because the depreciation expense account is a temporary account and the post-trial balance only includes the items of the permanent account.

Yes, an error has occurred.

Sahil Dangi answered 1 year ago

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