The Great Drink Company,in preparing its balance sheet,excludes the general manager's personal motor vehicle (not used in the business)because of which of the following accounting assumption?

Question

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The accounting entity assumption states that a business is distinct from its owners or any other businesses. Therefore, the personal motor vehicle of the general manager should be excluded from the balance sheet because it is not owned by the business and is not used in its operations.

The Great Drink Company,in Preparing Its Balance Sheet,excludes the General