W

question 259

Multiple Choice

W

• A) AC-invalid.
• B) MT-valid.
• C) DA-invalid.
• D) DS-invalid.
• E) MP-valid.

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Definitions:

Owner's Drawings Account

An account used to record withdrawals of assets from a business by the owner for personal use.

Income Summary Account

A temporary account used in accounting to transfer revenues and expenses at the end of an accounting period; its balance is ultimately transferred to retained earnings.

Owner's Capital Account

A line item in a firm's balance sheet that shows the value of the proprietor's invested capital and the accumulated profits retained within the company.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.