The Owner of Sassycat Designs Wrote a Company Check to Pay

question 131

Multiple Choice

The owner of Sassycat Designs wrote a company check to pay her personal credit card bill. What accounting principle did she violate?

• A)Cost
• B)Reliability
• C)Business entity
• D)No principle is violated-the bank account belongs to her, so it's okay to write checks.

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Definitions:

Time Expression

Phrases or terms used to indicate a specific period during which an event occurs or is scheduled to take place.

Maturity Dates

The specific dates on which a financial instrument such as a bond, loan, or fixed income instrument becomes due and is to be paid off.

95-Day Note

A financial instrument specifying repayment of a loan or debt within 95 days.

5-Month Note

A short-term financial instrument that matures or is due for payment in five months.