Asked by Jaquin Fielder on Jun 25, 2024
Verified
On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.
Balance Sheet Columns
The sections of a balance sheet which typically include assets, liabilities, and shareholders' equity.
Drawing Account
An account used to record withdrawals made by a business owner or partner from the company for personal use.
- Master the identification of components and the strategy for preparing the balance sheet and income statement derived from worksheet data.
Verified Answer
SF
sabelle franklinJun 26, 2024
Final Answer :
True
Explanation :
This is true, as the capital and drawing account balances are necessary components for calculating the owner's equity section of the balance sheet.
Learning Objectives
- Master the identification of components and the strategy for preparing the balance sheet and income statement derived from worksheet data.