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:

Productivity

Refers to the amount of goods or services produced for every hour worked.

Bureaucratic Ritualism

Involves bureaucrats getting so preoccupied with rules and regulations that they make it difficult for the organization to fulfill its goals.

Dehumanization

Occurs when bureaucracies treat clients as standard cases and personnel as cogs in a giant machine. This treatment frustrates clients and lowers worker morale.

Bureaucracies

Complex organizational structures with fixed rules, a hierarchy of authority, and a full-time administrative staff, designed to coordinate and control the work of many individuals.