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The owner of a business paid cash from his personal checking account to purchase an automobile for his personal use. This transaction?

a. decreased cash and increased expenses b. increased a liability account and increased liabilities c. increased assets and increased owners’ equity d. is not a transaction recognized by the business

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/03/12
Abdul Rauf
by Abdul Rauf , Finance Manager , Copier International Trading

answer D

khaled Ibrahim Sayed Abd El Salam Ibrahim
by khaled Ibrahim Sayed Abd El Salam Ibrahim , Chief Accountant , -ElMehy engineering company

Big Yes for (( D )) beacuse the transaction in whole is personal and not to related to the company either in direct or in-direct way.

Muhammed Nisar
by Muhammed Nisar , Assistant Manager - Finance and Accounts , YouGotaGift

D is the Answer,Which is not related to busines

Rihan Najimudeen
by Rihan Najimudeen , Auditor , BDO international

is not a transaction recognizedby the business according to business entity convention business is treated as a seperate entity from its owners

 

Purushottam Thapa
by Purushottam Thapa , GENERAL ACCOUNTANT , KHAYARAT FAHUD LLC

This is not related to the business transaction as it is totally personal . Owner has used his personal account to purchase personal things. So D is the right answer.

Thaikkattil Mathew Joshi
by Thaikkattil Mathew Joshi , Group Credit Controller , Gps Group,Dubai.

Answer: D

 

Joshi Mathew

CIA

Albert Galang
by Albert Galang , Accountant , Saudi Health Services Co. Ltd.,

D. Applying the entity concept in accounting wherein the personal transactions of the owner is different from the transaction of the business. The business has given its own personality separate and distinct from the owner. The said transaction has nothing to do with the business, hence should not be recorded from the Company's book of accounts.

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

d

Muhammad Usman Ashraf
by Muhammad Usman Ashraf , VAT Accountant , Jumeirah Golf Estates

D

MUHAMMAD ETIMAD SYED
by MUHAMMAD ETIMAD SYED , Senior Financial Accountant , TA'AZ Group of Companies

is not a transaction recognized by the business