A-LevelAccountingThe accounting cycle9706/12 · May/June 2010 · Q41 Mark

The personal spending of the owner of a business is not recognised as a business expense. Which accounting principle is being applied?

Abusiness entity

Bconsistency

Cmoney measurement

Dprudence

✓ Correct answer

A: business entity

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2010 Paper 1 Variant 2, question 4.

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