Question

Return t US Kimmel, Financial Accounting, 9e Help System Announcements t Time: 03:15 PM / Remaining: 16 min. CES Multiple Choice Question 259 Which of the following accounts is both adjusted and closed? Depreciation Expense Accumulated Depreciation O Supplies Unearned Revenue Click if you would like to Show Work for this question: Open Sh!

Answer 1

Answer:

Depreciation Expense

Explanation:

Temporary accounts are adjusted and closed each year. They include income and expenses , i.e., items that come under income statement. There balances would be zero in the next year.

Permanent accounts are not closed at the end of each year. They are also called Balance sheet accounts and their balances are carried forward to the next year.

Depreciation is an expense which is adjusted and closed at the end of each year.

Accumulated Depreciation account is not closed at the end, unless the assets are sold.

Supplies is a current asset, and therefore is a balance sheet account.

Unearned revenue is treated as liability in accrual basis of accounting. Therefore, it is also a balance sheet account.

So the correct option must be Depreciation Expense.