Income summary-owner capital

Reference no: EM13784958

1. In closing entries there is one item that does not close to Income Summary and does get closed directly to Owner's Capital. Why do drawings get to skip this step?

2. Financial statements for public companies are prepared both quarterly and annually. For the financial statements all of them are prepared for a "period" of time except the Balance sheet which is prepared as a moment in time. We call the Balance Sheet a snapshot. Why is the Balance Sheet not prepared for a period of time like the others?

Reference no: EM13784958

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