Which of the following items relates to separating the reporting of business and personal economic transactions?
A) cost principle
B) monetary unit assumption
C) business entity assumption
D) measurement principle

Question

Quizplus · Accepted Answer

The business entity assumption states that business transactions should be recorded separately from personal transactions. This allows for clear and accurate reporting of the financial performance and position of the business. The cost principle relates to valuing assets at their original cost, the monetary unit assumption relates to reporting transactions in a common monetary unit, and the measurement principle relates to determining the value of assets and liabilities.

Which of the Following Items Relates to Separating the Reporting