The personal assets and liabilities of an owner are not shown on the business's financial statements because of the
A)separate entity concept.
B)sole proprietorship concept.
C)financial position concept.
D)objectivity concept.

Question

Quizplus · Accepted Answer

The separate entity concept states that the business is considered a separate entity from its owner, and therefore the financial statements should only reflect the financial position of the business itself. The personal assets and liabilities of the owner are not included in the financial statements because they are not part of the business's financial position.

The Personal Assets and Liabilities of an Owner Are Not