Asked by Abbee Darsey on May 11, 2024
Verified
The accumulated depreciation account is closed to the drawing account.
Drawing Account
An account used to record withdrawals of cash or other assets from a business by the owner for personal use.
Accumulated Depreciation
The total amount of a company's assets' depreciation since the assets were acquired, reflecting how much of the assets' value has been used up over time.
- Ascertain the classification and essence of distinct balance sheet and income statement accounts.
Verified Answer
MS
Meline SabatiniMay 18, 2024
Final Answer :
False
Explanation :
The accumulated depreciation account is a contra-asset account and is closed to the fixed assets account, not the drawing account.
Learning Objectives
- Ascertain the classification and essence of distinct balance sheet and income statement accounts.
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