Sam Ryo is the proprietor (owner) of Sam's a retailer of golf apparel. When recording the financial transactions of Sam's Sam does not record an entry for a car he purchased for personal use. Sam took out a personal loan to pay for the car. What accounting concept guides Sam's behavior in this situation?
A) Pay back concept
B) Economic entity assumption
C) Cash basis concept
D) Monetary unit assumption
Correct Answer:
Verified
Q79: George and Ringo met at law school
Q80: Generally accepted accounting principles are
A) income tax
Q81: When an owner withdraws cash or other
Q82: Liabilities
A) are future economic benefits.
B) are existing
Q83: A basic assumption of accounting that requires
Q85: Capital is
A) an owner's permanent investment in
Q86: Sources of increases to owner's equity are
A)
Q87: The common characteristic possessed by all assets
Q88: A basic assumption of accounting assumes that
Q89: Revenues would not result from
A) sale of
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