In Order to Close the Owner's Drawings Account, the

question 100

Multiple Choice

In order to close the Owner's Drawings account, the

• A) Income Summary account should be debited.
• B) Income Summary account should be credited.
• C) Owner's Capital account should be credited.
• D) Owner's Capital account should be debited.

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Definitions:

Variable Budget

A budget that adjusts in response to changes in activity levels or other factors, as opposed to a fixed budget.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate forecasting and analysis.

Static Budget

A fixed budget that remains unchanged over a period, regardless of variations in actual sales volume, production levels, or other operating factors.

Variable Budget

Variable Budget is a budget that adjusts based on changes in the volume of activity, allowing expenses to vary in direct proportion to changes in operational levels.