Ted is the proprietor of Ted's, a retailer of golf apparel. When recording the financial transactions of Ted's Ted does not record an entry for a car he purchased for personal use. Ted took out a personal loan to pay for the car. What accounting concept guides Ted's behavior in this situation?
A. pay back concept
B. economic entity assumption
C. cash basis accounting
D. monetary unit assumption
Answer: B. economic entity assumption
Business
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