The accounting concept that maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the:
A) reliability principle
B) going-concern assumption
C) monetary unit assumption
D) entity assumption

Question

Quizplus · Accepted Answer

The entity assumption maintains that each organization or section of an organization stands apart from other organizations and individuals. This means that the financial transactions of the entity must be kept separate from the personal transactions of its owners or employees.

The Accounting Concept That Maintains That Each Organization or Section