The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:
A)Time-period assumption.
B)Business entity assumption.
C)Going-concern assumption.
D)Revenue recognition principle.
E)Cost principle.

Question

Quizplus · Accepted Answer

The business entity assumption requires that every business be accounted for separately from other business entities, including its owner or owners. This means that the accounting records must only reflect the transactions of the specific business being reported on, and not any personal transactions of the owners or other businesses they may own.

The Accounting Concept That Requires Every Business to Be Accounted