Closing the drawings account to Capital is NOT necessary if profit is greater than owner's drawings during the period.

Name: Closing the drawings account to Capital is NOT necessary if profit is greater than owner's drawings during the period.
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Question

Quizplus · Accepted Answer

Closing the drawings account to Capital is necessary regardless of the profit amount, as it adjusts the owner's equity to reflect withdrawals made during the period.

Closing the Drawings Account to Capital Is NOT Necessary If