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Commerce · Q146

Accounting

Graduate and Post Graduate · Commerce · question 146

Q146

The allocation of owner's private expenses to his/her business violates which of the following?

A.
Accrual concept
B.
Matching concept
C.
Separate business entity concept
Answer
D.
Consistency concept

Answer: Option C

Solution

Answer: Option C
Solution:
The allocation of owner's private expenses to his/her business violates Separate business entity concept. The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.