The Entry to Close the Depreciation Expense Account Would Cause

question 43

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 Depreciation Expense account balance to decrease.
• D) None of these are correct.

---

Definitions:

Sales

The overall income produced through the sale of a company's products or services.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.