The business entity principle
A)Means that business records should be kept separate from the owner's personal records.
B)Requires that corporations have shareholders.
C)Requires that sole proprietors have unlimited liability.
D)Requires that partnership income be taxed at the partnership level.
E)Requires that partnerships have written agreements.

Question

Quizplus · Accepted Answer

The business entity principle requires that business records should be kept separate from the owner's personal records. This means that a business is considered a separate entity from its owner(s) or shareholders and must be treated as such for accounting and tax purposes.

The Business Entity Principle