Which of the Following Entries Will Be Necessary to Close

question 123

Multiple Choice

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

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

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Definitions:

Minimum Point

The point at which a function reaches its smallest value, often used in the context of costs or optimization problems.

Short Run

A period of time during which at least one input of production is fixed, affecting the firm's ability to adjust production levels.

Variable Cost

A cost that depends on the quantity of output produced; the cost of a variable input.

Average Total Cost

This is the sum of all the costs of production (fixed and variable) divided by the number of units produced, providing a comprehensive understanding of production expenses.