Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.

Name: Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation Expense, like all other expense accounts, is closed to the Income Summary account to prepare the company for the next accounting period. Accumulated Depreciation, on the other hand, is a contra asset account and is not closed but rather carries its balance forward to the next accounting period.

Depreciation Expense Is Closed to Income Summary, but Accumulated Depreciation