The account sometimes referred to as the owner's personal account or drawing account is called a(n):
A) Revenue account.
B) Withdrawals account.
C) Capital account.
D) Expense account.
E) Liability account.

Question

Quizplus · Accepted Answer

The account referred to as the owner's personal account or drawing account is typically a withdrawals account. This account is used to record any money that the owner takes out of the business for personal use. It is important to track these withdrawals separately from business expenses and revenues in order to accurately determine the business's financial performance. Option A is incorrect because revenue accounts are used to track income earned by the business. Option C is incorrect because the capital account is used to record the initial investment made by the owner and any subsequent contributions to the business. Option D is incorrect because expense accounts are used to track the costs of running the business. Option E is incorrect because liability accounts typically represent debts owed by the business to other parties.

The Account Sometimes Referred to as the Owner's Personal Account