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According to which concept the owner of an enterprise pays the “interest on drawings”?
- a)Accrual concept
- b)Conservative concept
- c)Entity concept
- d)Dual Aspect concept
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
According to which concept the owner of an enterprise pays the “...
Entity concept
Description: The owner of the enterprise pays the interest on drawings according to the Entity concept. According to this concept, business enterprise is a separate identity a part from its owner. The proprietor is treated as a creditor of the company. Therefore, when he withdraws money for his personal use from the business, it is treated as loan from the business to the proprietor, that is why he pays interest on drawings.
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According to which concept the owner of an enterprise pays the “...
Owner's salary and profits from the business are treated as personal income?
The concept is called "sole proprietorship." It is a business structure in which an individual owns and operates the business, and therefore, all profits and losses are attributed to the owner. The owner also pays personal income taxes on the profits earned by the business.
The concept is called "sole proprietorship." It is a business structure in which an individual owns and operates the business, and therefore, all profits and losses are attributed to the owner. The owner also pays personal income taxes on the profits earned by the business.
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According to which concept the owner of an enterprise pays the “...
The owner of an enterprise has to pay interest on drawings on the entity concept. Because this concept states that owner has distinct legal identity from the business.The business here lend money to the owner in the form of drawings.Due, to this the owner will also act as debtor for the business from whom the money of drawing and interest due on him will be received by business.
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According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer?
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According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer?.
According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to which concept the owner of an enterprise pays the “interest on drawings”?a)Accrual conceptb)Conservative conceptc)Entity conceptd)Dual Aspect conceptCorrect answer is option 'C'. Can you explain this answer?.
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