What happens to drawing accounts during the closing process?

During the closing process, drawing accounts, which are used to track withdrawals by owners from their business equity, are zeroed out and closed. This action is necessary to prepare the accounts for the new accounting period. Closing the drawing accounts involves transferring their balances to the owner's equity account, thereby resetting their values to zero. This ensures that the financial records for the new period reflect only the activities that occur within that period, allowing for accurate tracking of the owners' capital contributions and withdrawals going forward. The other options suggested different treatments of drawing accounts that do not align with standard accounting practices.