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Don Jones Is the Proprietor (Owner) of Donny's, a Retailer

Question 71

Multiple Choice

Don Jones is the proprietor (owner) of Donny's, a retailer of golf apparel. When recording the financial transactions of Donny's, Don does not record an entry for a car he purchased for personal use. Don took out a personal loan to pay for the car. What accounting concept guides Don's behavior in this situation?


A) Pay back concept
B) Economic entity assumption
C) Cash basis concept
D) Monetary unit assumption

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