Which of the following accounts is closed to the profit or loss summary account?
A) GST receivable
B) Owner's drawings
C) Depreciation expense
D) Accrued wages

Question

Quizplus · Accepted Answer

Depreciation expense is closed to the profit or loss summary account because it represents the decrease in the value of the company's long-term assets (such as equipment or buildings) due to wear and tear, and is therefore considered an expense that reduces the company's income for the period. GST receivable, owner's drawings, and accrued wages are either assets or liabilities that do not affect the profit or loss summary account directly.

Which of the Following Accounts Is Closed to the Profit