The Balance in the Owner's Drawings Account After All Closing

question 120

Multiple Choice

The balance in the owner's drawings account after all closing entries have been posted will be equal to

• A) zero.
• B) the profit (or loss) for the period.
• C) the cash withdrawn by the owner during the period.
• D) the balance in the Owner's Capital account.

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Definitions:

Management

The process of directing and controlling a group or organization to achieve its goals by planning, organizing, leading, and controlling resources.

Stakeholder

An individual, group, or organization that has an interest in the activities and outcomes of a company or project.

Stockholder

An individual or entity that owns one or more shares of stock in a corporation, making them a partial owner of that company.

Creditor

An individual or institution to whom money is owed by a debtor, typically resulting from a provision of goods, services, or loans.