The entry to close the Depreciation Expense account would cause:
a. the Capital account balance to increase
b. the captial account balance to decrease
c. the depreciation expense account balance to decrese
d. none of the above
C: the depreciation expense account balance to decrese.
It is important to realize that when the depreciation expense entry is recorded, a company's net income is reduced by the expense, but its cash is not reduced.
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