BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accumulated Depreciation which is a balance sheet contra asset account and its balance is not closed at the end of each accounting period. As a result, Accumulated Depreciation is viewed as a permanent account.

Detailed explanation-2: -Depreciation expense is closed at the end of the accounting period. A depreciation expense is a nominal account and must be closed to retained earnings at the end of the period. Other choices are permanent accounts.

Detailed explanation-3: -The temporary accounts get closed at the end of an accounting year. Temporary accounts include all of the income statement accounts (revenues, expenses, gains, losses), the sole proprietor’s drawing account, the income summary account, and any other account that is used for keeping a tally of the current year amounts.

Detailed explanation-4: -The accumulated depreciation account is closed to the income summary account. During the closing process, some balance sheet accounts are closed and end the period with a zero balance. The income summary account is also known as the clearing account.