The Drawing account is an expense.

• A. False
• B. True
• C. It depends
• D. Not applicable

Answer: (A)

Drawings are withdrawals by the owner for personal use, not business costs. They reduce the owner’s equity on the balance sheet, and are not recorded as expenses on the income statement. In closing entries, drawings are typically closed to the owner's capital account, not to expense accounts. Because expenses are costs incurred to earn revenue and affect net income, while drawings simply reduce equity, the Drawing account should not be treated as an expense. It is not dependent on special circumstances; it remains an equity withdrawal.