The Withdrawals account is
A) a revenue, and it has a normal debit balance.
B) an expense, and it has a normal credit balance.
C) a liability, and it has a normal debit balance.
D) an owner's equity component, and it has a normal debit balance.

Question

Quizplus · Accepted Answer

Withdrawals by the owner (drawings) are considered a component of owner's equity and not a business expense. They reduce the owner's equity in the business and have a normal debit balance, opposite to the normal credit balance of the owner's equity accounts.

The Withdrawals Account Is