The owner withdraws inventory for his own use from the business.To which financial statement assumption does this relate?
A) Materiality
B) Monetary
C) Accounting period
D) Accounting entity

Question

Quizplus · Accepted Answer

This relates to the accounting entity assumption, which states that the business entity is separate and distinct from its owner(s) and any other business. When the owner withdraws inventory for personal use, it is considered a withdrawal of business assets for personal use, which is a violation of the accounting entity assumption.

The Owner Withdraws Inventory for His Own Use from the Business.To