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) Monetary unit assumption.
C) Business entity assumption.
D) Going-concern assumption.
E) Revenue recognition principle.

Question

Quizplus · Accepted Answer

The business entity assumption states that a business is separate from its owners and other businesses. This means that personal assets and transactions of the owner should not be included in the records and reports of the business. Doing so would violate this assumption and make it difficult to accurately assess the financial position and performance of the business.

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