The Accumulated Depreciation Account Is Closed to the Income Summary

question 166

True/False

The accumulated depreciation account is closed to the income summary account.

---

Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including income statement, balance sheet, and cash flow statement.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is received or paid.

Revenues

The total amount of money received by a company from its business activities, such as sales of products or services, before any deductions.

Revenue Recognition Principle

An accounting principle that determines the specific conditions under which revenue is recognized and recorded.