Which of the Following Applies to Both the Depreciation Expense

question 41

Multiple Choice

Which of the following applies to both the depreciation expense account and the accumulated depreciation account at the end of the first year of operations?

• A)They are closed.
• B)They appear in a trial balance prepared prior to the adjusting and closing entries.
• C)They are not closed at the end of the accounting period.
• D)They appear in a trial balance prepared after the adjusting entries but before the closing entries.

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Definitions:

Interest Income

Earnings received from deposit accounts like savings, or from investments like bonds, calculated as a percentage of the principal.

Loanable Funds Model

An economic model that describes the market where borrowers and lenders interact, determining the equilibrium interest rate and quantity of loanable funds.

Interest Rates

The amount of a loan that is incurred as interest by the borrower, customarily specified as an annual percentage of the loan in question's remaining value.

Invest

Diverting money with the hopes of producing an income or realizing a profit.