Introduction to Accounting

label Accounting
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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

Mar 1st, 2015

The entry to close the Depreciation Expense account would cause:

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.

Mar 1st, 2015

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