Which of the following concepts (or principles)would dictate that a person with three different businesses keep three different checking accounts?
A) Cost principle
B) Faithful representation principle
C) Going-concern concept
D) Entity concept

Question

Quizplus · Accepted Answer

The Entity concept states that the business and the owner are separate entities, and therefore, the personal and business transactions should be kept separate. In this case, a person with three different businesses should have three different checking accounts to maintain the separation and identity of each business entity.

Which of the Following Concepts (Or Principles)would Dictate That a Person