The business entity assumption requires that a business be accounted for separately from other business entities,including its owner or owners.

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The business entity assumption is a fundamental accounting principle that assumes that a business is a separate entity from its owners or other businesses. This means that the financial transactions of the business must be recorded separately from the personal transactions of the owners or any other businesses that may be involved. The purpose of this principle is to ensure that the financial results of the business are accurate and reliable, and can be used to make informed business decisions.

The Business Entity Assumption Requires That a Business Be Accounted