alleryAn owner pays for a family holiday from her own pocket. That payment stays out of the business records under the business:
AEntity concept
BEquity concept
CEscrow concept
DExpense concept
Answer & Solution
Correct answer: A. Entity concept
1. Business records are meant to show the business alone.
2. A private holiday is the owner's affair, not the firm's trading.
3. The business entity concept keeps it out of the books.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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