Bill Rogers Has Three Different Businesses

question 95

Multiple Choice

Bill Rogers has three different businesses. He has only one bank account for transactions relating to all of his various businesses. Which of the following concepts or principles of accounting is Bill violating?

• A)Cost principle
• B)Entity concept
• C)Going- concern concept
• D)Profit recgnition principle

---

Definitions:

Indirect Pay

Compensation that includes benefits provided by the employer but are not directly paid out as cash, such as health insurance and retirement plans.

Supplemental Medical Coverage

Additional health insurance that covers costs not covered by a primary insurance plan, including copayments, deductibles, and non-covered services.

Market Pricing

The process of determining the value of a job in the external job market by comparing it with similar jobs in other organizations.

Equity

Fair treatment and distribution of resources, or in finance, the value of an ownership interest in property, including shareholders' equity in a corporation.