Final answer:
The statement about the Owner's Capital account being increased by net income and decreased by owner withdrawals during the closing process is true. Net income increases owner's equity, while owner withdrawals decrease it.
Step-by-step explanation:
The statement given by the student, 'During the closing process, the Owner's Capital account is increased due to a net income and decreased due to any Owner Withdrawals,' is true. During the closing process in accounting, revenues and expenses are transferred to the Income Summary account. The net income (or loss) is then calculated as the difference between revenues and expenses. If there is a net income, it increases the Owner's Capital account when it is closed out to this account. Conversely, if the owner takes money out of the business for personal use, known as owner withdrawals or drawings, this decreases the Owner's Capital account. Essentially, the closing process ensures that the Owner's Capital account reflects the changes to the equity of the business over the reporting period.