Requiring the transactions of a business be accounted for separately from the personal transactions of its owners reflects the
A) entity concept.
B) historical cost principle.
C) unit of measurement concept.
D) going concern assumption.
E) revenue recognition rule.

Question

Quizplus · Accepted Answer

The entity concept in accounting states that a business must be accounted for as an entity separate from its owners or other businesses. This means that the transactions of the business cannot be mixed with the personal transactions of its owners.

Requiring the Transactions of a Business Be Accounted for Separately