The owner's drawings account
A) appears on the income statement along with the expenses of the business.
B) must show transactions every accounting period.
C) is increased with debits and decreased with credits.
D) is not a proper subdivision of owner's equity.

Question

Quizplus · Accepted Answer

The owner's drawings account is an equity account that is used to record the amounts withdrawn by the owner from the business for personal use. It is decreased with debits and increased with credits, and is considered a subdivision of owner's equity. However, it does not appear on the income statement along with the expenses of the business, as it is not an expense but rather a reduction of the owner's equity in the business. It also does not necessarily have to show transactions every accounting period, as it depends on whether the owner made any withdrawals during that period.

The Owner's Drawings Account