To include the personal assets and transactions of a business's stockholders in the records and reports of the business would be in conflict with the:
A)Objectivity principle.
B)Monetary unit assumption.
C)Business entity assumption.
D)Going-concern assumption.
E)Revenue recognition principle.

Question

Quizplus · Accepted Answer

The business entity assumption states that the business's financial information is separate from the personal assets and transactions of its owners, and should be recorded and reported accordingly. Including the personal assets and transactions of stockholders would violate this assumption.

To Include the Personal Assets and Transactions of a Business's