Neil owns a sporting goods store. In his accounting records, he included his personal computer and all of his personal sporting gear. Neil is violating what principle of accounting?

Question

Quizplus · Accepted Answer

The principle being violated is the business entity principle, which requires that the personal assets of an owner are separate from the assets of the business. By including his personal computer and sporting equipment in his accounting records, Neil is treating them as if they are assets of the business, which is a violation of this principle.

Neil Owns a Sporting Goods Store