Which underlying assumption is violated if the owner's personal residence is included on the company balance sheet?
A)monetary unit assumption
B)periodicity assumption
C)economic entity concept
D)common sense assumption

Question

Quizplus · Accepted Answer

The economic entity concept assumes that the business is separate from the personal affairs of its owner. Including the owner's personal residence on the company balance sheet violates this assumption.

Which Underlying Assumption Is Violated If the Owner's Personal Residence