The owner of a business paid for his family’s holiday from the business bank account and recorded the payment as drawings. Which accounting concept is being applied?
Select ONE answer:
- Accruals
- Business entity
- Going concern
- Prudence
- Consistency
The four fundamental concepts or rules of accounting that should be followed in the preparation of all accounts and financial statements are?
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This is multiple choice question is suitable for Accounting KS5 classes.
The answer is 2 – Business entity as this is a personal expense, not a company expense.
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