Asked by Amrita Tambar on Apr 28, 2024

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Verified

The classification and normal balance of the drawing account are

A) expense, credit balance
B) expense, debit balance
C) liability, credit balance
D) owner's equity, debit balance

Drawing Account

An account that tracks the amount withdrawn by the owners from the business for personal use.

Credit Balance

The amount appearing on the credit side of a ledger, indicating the total credits exceed the total debits in an account.

Debit Balance

It is the remaining amount owing in an account after all debits and credits have been accounted for, typically found in asset and expense accounts.

  • Distinguish and sort various account types (assets, liabilities, owner's equity, expenses, revenues).
  • Acknowledge the regular balance (debit or credit) for multiple kinds of accounts.
verifed

Verified Answer

GA
Grace AlfreyApr 29, 2024
Final Answer :
D
Explanation :
The drawing account is classified under owner's equity and normally has a debit balance because it represents withdrawals by the owner from the business, reducing the overall equity.