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:

Retrospectively Apply

The application of a new accounting policy to transactions, other events, and conditions as if that policy had always been applied.

Opening Balance Sheet

Denotes a financial statement depicting a company's financial position at the start of a new accounting period.

Valuation Method

The process of determining the present value of an asset or a company, based on metrics such as earnings, cash flow, and the market value of assets.

Accounting Practices

The systematic processes and guidelines followed by companies to prepare, present, and report financial statements.