When an owner combines their personal assets with the assets of their business, what concept or principle of accounting is being violated?

Question

Quizplus · Accepted Answer

The principle of business entity is being violated when an owner combines their personal assets with the assets of their business. This principle states that business transactions should be recorded separately from the transactions of the owner or any other entity. By mixing personal and business assets, it becomes difficult to determine the financial performance and position of the business.

When an Owner Combines Their Personal Assets with the Assets