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

Name: The owner's drawings account is closed to the Income Summary account in order to properly determine Profit (or loss) for the period.
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Question

Quizplus · Accepted Answer

The owner's drawings account is not closed to the Income Summary account; instead, it is closed directly to the owner's capital account to reflect withdrawals from the business by the owner.

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