The Entry to Close the Owner's Drawing Account Would Include

question 71

Multiple Choice

The entry to close the owner's drawing account would include a debit to the

• A) Income Summary account and a credit to the owner's drawing account.
• B) owner's drawing account and a credit to Cash.
• C) owner's capital account and a credit to the owner's drawing account.
• D) owner's drawing account and a credit to the Income Summary account.

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Definitions:

Equity Financing

Raising capital through the sale of shares in a company, offering investors ownership interests.