Which underlying assumption presumes that the owner's personal residence should not be included as an asset on the company balance sheet?
A) monetary unit assumption
B) periodicity assumption
C) economic entity concept
D) common sense assumption

Question

Quizplus · Accepted Answer

The economic entity concept assumes that the business is separate from its owner and other entities, meaning personal assets like the owner's residence should not be included on the company's balance sheet.

Which Underlying Assumption Presumes That the Owner's Personal Residence Should