Which of the Following Would Violate the Economic Entity Concept

question 149

Multiple Choice

Which of the following would violate the economic entity concept?

• A) reporting amounts owed to the company's suppliers as a liability on the balance sheet.
• B) reporting equipment owned and used in the business as an asset in the balance sheet.
• C) reporting withdrawals by the owner as a drawing in the statement of owner's equity.
• D) reporting the owner's personal sailboat as an asset on the balance sheet.

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Definitions:

Emotional Abuse

A form of abuse characterized by a person subjecting or exposing another to behavior that may result in psychological trauma including anxiety, chronic depression, or PTSD.

Physical Abuse

The use of physical force or violence to harm or intimidate another person.

Reconstruction

The process of rebuilding or making amendments to something that has been damaged or outdated.

Savickas's Approach

A career counseling method focusing on an individual's life story to guide career choice and development.