Jeff brown, owner of shoe central, a small shoe store, buys cleaning supplies for his store once every six months. the fact that his accountant writes off, or records as expenses, the full cost of the cleaning supplies when they are purchased, rather than each monthly accounting period as they are used, is an application of the _______ concept.
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the shopkeeper also included the extraordinary expenses to the cost of material
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"Entity Concept:"
The business entity concept expresses that the exchanges related with a business must be independently recorded from those of its proprietors or different organizations. Doing as such requires the utilization of discrete bookkeeping records for the association that totally bar the advantages and liabilities of some other element or the proprietor.
This entity concept is essential in such a case that exchanges of a business are stirred up with that of its proprietors or different organizations, the bookkeeping data would lose its "ease of use"."
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