Asked by Salvador Ramirez on May 26, 2024
Verified
The Withdrawals account is closed to Income Summary.
Withdrawals Account
An account used to record the amounts taken out of a business by its owner(s) for personal use.
- Familiarize oneself with the procedure for withdrawals as it pertains to the capital account.
Verified Answer
KW
Kirsten WernerMay 26, 2024
Final Answer :
False
Explanation :
The Withdrawals account (or Drawings account) is closed directly to the owner's capital account, not to the Income Summary account.
Learning Objectives
- Familiarize oneself with the procedure for withdrawals as it pertains to the capital account.