The owner of XYZ Corporation includes his personal liabilities with business liabilities.What accounting concept is being violated?

Question

Quizplus · Accepted Answer

According to the business entity concept, the business is treated as a separate entity from its owner. By including personal liabilities with business liabilities, the owner is violating this concept. This could lead to incorrect financial statements and misrepresentation of the financial position of the business.

The Owner of XYZ Corporation Includes His Personal Liabilities with Business