The entry to close the Depreciation Expense account would cause
A) the Capital account balance to increase.
B) the Capital account balance to decrease.
C) the Depreciation Expense account balance to decrease.
D) None of these are correct.

Question

Quizplus · Accepted Answer

Closing the Depreciation Expense account involves transferring its balance to an income summary or directly to the retained earnings account, effectively reducing the Depreciation Expense account balance to zero. This process does not directly affect the Capital account balance.

The Entry to Close the Depreciation Expense Account Would Cause