The separate entity concept requires that
A) a business have its own set of financial records that are kept separate from its owner's financial records.
B) transactions that involve an exchange of value be kept together with those that do not.
C) tax records be kept separate from financial reporting records.
D) a separate set of books be established for each segment of a business.

Question

Quizplus · Accepted Answer

The separate entity concept requires that a business has its own set of financial records that are kept separate from its owner's financial records. This is necessary to accurately reflect the financial position and performance of the business, separate from the personal finances of the owner.

The Separate Entity Concept Requires That