Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?
A)Monetary unit assumption.
B)Continuity assumption.
C)Historical cost principle.
D)Separate entity assumption.

Question

Quizplus · Accepted Answer

The Separate Entity Assumption implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners. This means that the personal assets of the owners are not included in the financial statements of the business, and vice versa.

Which of the Following Assumptions Implies That the Assets and Liabilities