Ted Leo Is the Proprietor (Owner) of Ted's, a Retailer

question 139

Multiple Choice

Ted Leo is the proprietor (owner) of Ted's, a retailer of golf apparel. When recording the financial transactions of Ted's, Ted does not record an entry for a car he purchased for personal use. Ted took out a personal loan to pay for the car. What accounting concept guides Ted's behavior in this situation?

• A) Pay back concept
• B) Economic entity assumption
• C) Cash basis concept
• D) Monetary unit assumption

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Definitions:

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve or alter human behavior, often including reinforcement or punishment.

Tier 2 Interventions

Targeted strategies or support implemented to address specific needs or skills deficits in individuals not responding adequately to universal interventions.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct, often addressing disputes of moral diversity.

Moral Principles

Fundamental beliefs or rules about what is right and wrong that guide behavior and decision-making.