passwella.
Menu

WAEC Financial Accounting 2008 Question 4

Question 4

Accounting Concepts and Conventions

Which of the following concepts is expected to hold when a proprietor makes a drawing of goods or cash from the business?

  1. A.Business entity
  2. B.Realization
  3. C.Going concern
  4. D.Dual-aspect
Show the answer and explanation

Answer: A (Business entity)

Explanation

The business is separate from the owner, so his drawings are recorded as reducing his capital.