JAMB Accounting 2022 Objective — Question 37
Question 37 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2022 Objective paper, with the correct answer and a full explanation.
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37. Treating money or goods taken from the business by the owner for personal use as drawings buttresses the accounting concept of
- A. (A) Cost
- B. (B) Prudence
- C. (C) Consistency
- D. (D) EntityCorrect
Explanation
The entity concept states that the organization is different from the owner; thus, when the owner takes something from the business, it is treated as drawings.
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