The withdrawals account is a temporary account and it must be closed.

Name: The withdrawals account is a temporary account and it must be closed.
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Question

Quizplus · Accepted Answer

The withdrawals account is a temporary account used to track the amount of money or assets taken out of the business by the owner(s) for personal use during an accounting period. At the end of the period, it must be closed to the owner's capital account to reflect the decrease in equity resulting from the withdrawals.

The Withdrawals Account Is a Temporary Account and It Must