Bill Rogers has three different businesses.He has only one bank account for transactions relating to all of his various businesses.Which of the following concepts or principles of accounting is Bill violating?

Question

Quizplus · Accepted Answer

Bill Rogers is violating the entity concept, which states that a business owner should keep separate records and accounts for his personal transactions and different businesses. Mixing transactions of different businesses in a single account can blur the financial position and performance of each business, resulting in inaccurate financial reporting.

Bill Rogers Has Three Different Businesses