Don Jones Is the Proprietor (Owner) of Donny's, a Retailer

question 71

Multiple Choice

Don Jones is the proprietor (owner) of Donny's, a retailer of golf apparel. When recording the financial transactions of Donny's, Don does not record an entry for a car he purchased for personal use. Don took out a personal loan to pay for the car. What accounting concept guides Don'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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