Question

Alex the bookkeeper finds the depreciation expense account for equipment in a post-closing trial balance. Is this indicative of an error? Why or why not?

Answer 1

1. Yes, the depreciation expense account for equipment in a post-closing trial balance is an indicative of an error, because depreciation expense is an temporary account.

2. In a post closing trail balance only permanent account balances are kept temporary accounts are closed in the closing process.

3. closing process involves such temporary accounts are closed to income summary account and then to retained earnings.

4. Here, temporary accounts include all revenue ,expense and dividend accounts.