The Entry to Close the Depreciation Expense Account Would Cause

question 100

Multiple Choice

The entry to close the Depreciation Expense account would cause:

• A) the Capital account balance to increase.
• B) the Capital account balance to decrease.
• C) the Accumulated Depreciation account balance to increase.
• D) None of the above answers are correct.

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Definitions:

Chapter 7

A provision of the bankruptcy code in the United States that provides for "liquidation," whereby a debtor's non-exempt assets are sold and the proceeds are used to pay creditors.

Automatic Stay

A self-operating postponement of collection proceedings against a debtor who has filed a petition for bankruptcy.

Collection Proceedings

The legal process initiated by creditors to recover money owed by a debtor.

Means Test

Three steps used to qualify someone for Chapter 7 bankruptcy.