Financial statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties. To explain: An error is occurred or not if the post-closing trial balance includes a depreciation expense account.

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Chapter 3, Problem 12DQ

To determine

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Financial statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.

To explain: An error is occurred or not if the post-closing trial balance includes a depreciation expense account.

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