Which of the Following Conventions Dictates That a Sole Owner's

question 3

Multiple Choice

Which of the following conventions dictates that a sole owner's personal transactions should not be included in the records of the business?

• A)Accounting period.
• B)Business entity.
• C)Prudence.
• D)Historic cost.

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Definitions:

Scarcity

The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output; the fundamental economic constraint that creates opportunity costs and that necessitates the use of marginal analysis (cost-benefit analysis) to make optimal choices.

Opportunity Costs

Missing out on potential gains from various alternatives once a particular option is picked.

Economics Quiz

A set of questions designed to test knowledge and understanding of economic principles and theories.

Marginal Benefit

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.