Bill Rogers Has Three Different Businesses

question 147

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) Faithful representation principle
• B) Entity concept
• C) Cost principle
• D) Going-concern concept

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Definitions:

Coffee Club

An informal group or organization formed by individuals who share a common interest in drinking coffee and social interaction.

Big Bank

A large, influential financial institution capable of exerting significant impact on the national or global economy.

Banking System

The network of financial institutions that provide banking services, such as accepting deposits and lending money.

Drawer

In financial transactions, the drawer is the person who writes or issues a cheque or draft, instructing their bank to pay a specified sum of money to the payee or bearer.