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:

Short-Term Debt Investments

Investments made with the intention of earning a return on surplus cash that can be converted into cash within a short period, usually less than one year.

Securities Market

A financial marketplace where securities such as stocks and bonds are bought and sold, facilitating capital flow in the economy.

Brokerage Fees

Fees charged by a broker for executing transactions or providing specialized services.

Cost Method

An accounting approach where investments are recorded at their purchase cost without considering market value fluctuations.