Question: Which statement is correct? 1. The Depreciation account is a real account and is closed-off to the Profit and Loss account. 2. The Accumulated Depreciation

Which statement is correct?

1. The Depreciation account is a real account and is closed-off to the Profit and Loss account.

2. The Accumulated Depreciation account is a real account and must be closed-off to the Property, Plant, Equipment account.

3. The Depreciation account is a nominal account and is closed-off to the Profit and Loss account.

4. The Accumulated Depreciation account is a nominal account and is never closed-off before the disposal of the asset.

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