For Drawings,the Category of Account and Its Normal Balance Are

question 19

Multiple Choice

For Drawings,the category of account and its normal balance are:

• A)Owners' equity and a credit balance.
• B)Liabilities and a credit balance.
• C)Assets and a credit balance.
• D)Owners' equity and a debit balance.

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Definitions:

Prior Period Adjustments

Adjustments made to correct financial statements of previous periods due to errors or changes in accounting policy, ensuring accuracy in current financial reporting.

Statement Of Retained Earnings

A financial document that shows how a firm's earnings are reinvested in the business or paid out to shareholders.

Multiple-step

An income statement format that shows several steps to determine net income, including gross profit, operating income, and other income and expenses.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.