Which of the Following Accounts Will Be Closed by Debiting

question 1

Multiple Choice

Which of the following accounts will be closed by debiting the Income Summary account?

• A) Depreciation Expense
• B) Accounts Payable
• C) Service Revenue
• D) Accumulated Depreciation

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Definitions:

Original Costs

The initial monetary value paid or incurred for an asset, including purchase price and any additional charges necessary to bring it to its current location and condition.

LIFO Perpetual

LIFO Perpetual is an inventory costing method that assumes the last items produced or purchased are the first to be sold, with continuous inventory and cost of goods sold updating.

Inventory Method

A strategy used by businesses to value and manage their inventory, affecting how costs are recorded and profits calculated.

Weighted-Average

A mathematical average that takes into account the varying degrees of importance of the numbers in a data set.