The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

Question

Quizplus · Accepted Answer

The statement is true. The business entity assumption requires that a business is treated as a separate economic entity from its owner or owners. This means that the business's financial transactions and accounts are kept separate from personal transactions and accounts of its owner/s.

The Business Entity Assumption Means That a Business Is Accounted