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

question 87

Multiple Choice

In order to close the owner's drawing 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:

Profit-Maximizing

A strategic approach in which a firm determines the best output level and pricing to achieve the highest possible profit.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has a significant influence on the market price.

Long-Run Equilibria

A state in economics where all factors of production and costs are variable, and firms make decisions to maximize profits without any fixed inputs.

Demand Increases

A situation in which the desire and ability of consumers to purchase a good or service grow, typically leading to higher prices and potentially greater supply.