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

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

Quizplus · Accepted Answer

The owner's drawing account is closed to the owner's capital account, not the Income Summary account. The Income Summary account is used to close revenue and expense accounts to determine net income or loss.

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