The closing entry for the Loss on Plant Assets account includes a debit to
A) Retained Earnings.
B) Income Summary.
C) Loss on Plant Assets.
D) Gain on Plant Assets.

Question

Quizplus · Accepted Answer

The closing entry for the Loss on Plant Assets account typically includes a debit to the Income Summary account. This is because the loss is an expense that reduces the company's net income for the period, and all expenses and revenues are closed to the Income Summary account in the closing process.

The Closing Entry for the Loss on Plant Assets Account