The owner of Sassycat Designs wrote a company check to pay her personal credit card bill. What accounting principle did she violate?

Question

Quizplus · Accepted Answer

The accounting principle that was violated is the business entity principle. This principle states that the business finances should be kept separate from the personal finances of its owner. By using the company's check to pay for her personal credit card bill, the owner of Sassycat Designs mixed her personal and business finances, violating this principle.

The Owner of Sassycat Designs Wrote a Company Check to Pay