A-LevelAccountingThe accounting cycle9706/12 · May/June 2017 · Q11 Mark

When a businessman introduces capital into his business, the transaction is debited in the cash book and credited to his capital account. Of which accounting concept is this an example?

Abusiness entity

Bgoing concern

Cmatching

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 2017 Paper 1 Variant 2, question 1.

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