In the closing process,the Owner,Withdrawals account is closed to the Owner,Capital account.

Question

Quizplus · Accepted Answer

This is true. The Owner, Withdrawals account is used to track any money the owner withdraws from the business for personal use. At the end of the accounting period, the balance in this account is closed (or transferred) to the Owner, Capital account, which represents the owner's equity in the business. This is done to ensure that the owner's personal withdrawals are not included in the company's net income or retained earnings.

In the Closing Process,the Owner,Withdrawals Account Is Closed to the Owner,Capital