BUSINESS ENTITY CONCEPT QUIZ

If a business owner withdraws RM150 to buy gifts for his daughter. Is that an expense?

• Yes

• No

Which one of the following transactions should NOT be recorded as an expense in the books?

• Purchasing furniture for the business

• Paying utility bill for the month

• Purchasing a brand new phone for the owner's birthday party

• Paying the fee for repairing a broken machinery

Is counting a correct profit one of the key reasons of the business entity concept?

• Yes

• No

Which one below is NOT the impact of the business entity concept?

• clear accountability

• improves financial control

• ensures compliance with laws and taxation

• build trust with external users

"Business is treated as a separate entity from its owner"
Is the statement above the correct definition of business entity concept?

• True
• False

How do we record when a business owner withdraws RM350 to pay his son's monthly tuition fee?

• Dt = Account Receivables
  Ct = Cash

• Dt = Cash
  Ct = Income

• Dt = Withdrawal
  Ct = Cash