The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:
A)Time-period assumption.
B)Business entity assumption.
C)Going-concern assumption.
D)Revenue recognition principle.
E)Measurement (Cost)principle.

Question

Quizplus · Accepted Answer

The business entity assumption states that every business must be accounted for separately from other business entities, including its owner or owners. This means that the financial transactions of a business must be recorded separately from the personal transactions of its owner(s). This is important for financial reporting and analysis purposes, as it allows for a clear and accurate picture of a business's financial position and performance.

The Accounting Concept That Requires Every Business to Be Accounted