Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?

Question

Quizplus · Accepted Answer

The separate entity assumption states that the business is a separate entity from its owners, and therefore the assets and liabilities of the business must be accounted for separately from the personal assets and liabilities of the owners. The other assumptions (stable monetary unit assumption, continuity assumption, and historical cost principle) do not pertain to the separation of assets and liabilities between the business and its owners.

Which of the Following Assumptions Implies That the Assets and Liabilities