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