The balance of the owner's drawing account is
A) listed in the Other Expenses section of the income statement.
B) listed in the Current Assets section of the balance sheet.
C) used in the calculation of ending capital on a statement of owner's equity.
D) listed in the Operating Expenses section of the income statement.

Question

Quizplus · Accepted Answer

The owner's drawing account represents the amount of money the owner has taken out of the business for personal use. This amount is deducted from the owner's capital at the end of the accounting period to calculate the ending capital. Therefore, the balance of the owner's drawing account is used in the calculation of ending capital on a statement of owner's equity.

The Balance of the Owner's Drawing Account Is