To Close the Withdrawals Account

question 6

Multiple Choice

To close the Withdrawals account:

• A) debit Withdrawals; credit Revenue.
• B) debit Capital; credit Withdrawals.
• C) debit Withdrawals; credit Income Summary.
• D) debit Income Summary; credit Withdrawals.

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Definitions:

Retail Business

A type of business that sells goods directly to consumers, typically operating from physical locations or through online platforms.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes, machinery, and operations.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business.

Managerial Accounting

Refers to the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.