During the closing process, Accumulated Depreciation, Equipment will:
A)be closed to the income summary account.
B)not be closed.
C)be closed to the drawing account.
D)be closed to the capital account.

Question

Quizplus · Accepted Answer

Accumulated Depreciation, Equipment is a contra asset account and as such, it is not closed. Only revenue, expense and drawing accounts are closed to the income summary account, while capital accounts are closed directly to the owner's equity section of the balance sheet.

During the Closing Process, Accumulated Depreciation, Equipment Will