The Entry to Close the Depreciation Expense Account Would Include

question 58

Multiple Choice

The entry to close the Depreciation Expense account would include a debit to

• A) the Income Summary account and a credit to the Depreciation Expense account.
• B) the Income Summary and a credit to Cash.
• C) Cash and a credit to the Income Summary account.
• D) the Depreciation Expense account and a credit to the Income Summary account.

---

Definitions:

Equipment

Tangible assets used in operations, such as machinery and computers, that have a useful life beyond one year.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Balance Sheet

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.