The owner's drawings account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

Name: The owner's drawings account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The owner's drawings account is not closed to the Income Summary account; instead, it is closed directly to the owner's capital account to reflect withdrawals from the business by the owner.

The Owner's Drawings Account Is Closed to the Income Summary