Which of the Following Entries Will Be Necessary to Close

question 40

Multiple Choice

Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?

• A)Debit Income summary and credit Depreciation expense
• B)Debit Income summary and credit Accumulated depreciation
• C)Debit Accumulated depreciation and credit Income summary
• D)Debit Depreciation expense and credit Income summary

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Definitions:

Financial Disaster

A catastrophic situation where financial losses are so extreme that they disrupt the normal operations of an economy or organization.

Propensity to Overestimate

A cognitive bias where individuals tend to overvalue the probability of positive outcomes or success.

Junk Bonds

Risky bonds issued by financially weak companies that pay high rates of interest. Also called high yield bonds.

Corporate Raiders

Investors who buy a large stake in a corporation with the goal to gain control and make changes to increase its value and their profit.