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)Objectivity principle
B)Realization principle
C)Business entity principle
D)Going-concern principle
E)Revenue recognition principle

Question

Quizplus · Accepted Answer

The business entity principle states that the records and reports of a business should only include transactions of the business and not the personal assets and transactions of the owner. This principle helps to maintain clear separation between the personal affairs of the owner and the business operations. Including personal assets and transactions in business records would be in violation of this principle.

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