The account to which the drawing account is closed is called
A) Revenue.
B) Income Summary.
C) Owner's Capital.
D) Cash.

Name: The account to which the drawing account is closed is called A) Revenue. B) Income Summary. C) Owner's Capital. D) Cash.
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Question

Quizplus · Accepted Answer

The drawing account is closed to the Owner's Capital account because drawings represent the owner's withdrawals from the business for personal use, which reduces the owner's equity in the business.

The Account to Which the Drawing Account Is Closed Is