The accounting concept underlying the treatment of personal expenses of the business owner as drawing is
Answer Details
The accounting concept underlying the treatment of personal expenses of the business owner as drawing is the "entity" concept. This concept states that the business is considered a separate entity from its owner(s), and therefore personal transactions of the owner(s) should not be recorded as business transactions. Instead, personal expenses of the owner(s) are recorded as drawings, which represent the amount of money taken out of the business by the owner(s) for personal use. By treating personal expenses as drawings, the financial statements provide a more accurate picture of the business's financial performance and position.