Question

he entry to close the Depreciation Expense account would include a debit to: Multiple Choice the Income Summary account and a credit to the Depreciation Expense account. the Income Summary and a credit to Cash. the Cash account and a credit to the Income Summary account. the Depreciation Expense account and a credit to the Income Summary account.

Answer 1

Debit to Income Summary account and a credit to the Depreciation Expense account.

Step-by-step explanation:

The depreciation is a reduction in the value of the asset due to tear and wear, obsolesce, usage of the fixed asset. It is charged on the fixed asset. The depreciation expense is shown on the debit side of the income statement

The closing entry is shown below:

Income summary A/c Dr. XXXXX

To Depreciation expenses XXXXX

(Being depreciation expenses is adjusted)