To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:
A) Going-concern assumption.
B) Business entity assumption.
C) Objectivity principle.
D) Revenue recognition principle.
E) Monetary unit assumption.

Question

Quizplus · Accepted Answer

The Business entity assumption requires that a business's records and reports only include the assets, transactions, and financial information related to the business itself, and not to its owner(s) or any other individuals or entities. Therefore, including the personal assets and transactions of a business owner in the records and reports of the business would be in conflict with this assumption.

To Include the Personal Assets and Transactions of a Business's