The owner of a corner store keeps separate private and business transactions.To which financial statement assumption does this relate?
A) materiality
B) accounting entity
C) accounting period
D) going concern.

Question

Quizplus · Accepted Answer

This relates to the accounting entity assumption, which states that the financial affairs of the owner(s) must be separate from those of the business entity. Keeping private and business transactions separate is a key aspect of adhering to this assumption.

The Owner of a Corner Store Keeps Separate Private and Business