Abe Cox is the sole owner and manager of Cox Auto Repair Shop.In 20A,Cox purchased a new automobile for personal use and continued to use an old truck in the business.Which of the following fundamentals prevents Cox from recording the cost of the new automobile as an asset to the business?

Question

Quizplus · Accepted Answer

The separate-entity assumption dictates that the business's financial records should be kept separate from the owner's personal financial activities. Therefore, Cox cannot record the personal automobile as a business asset.

Abe Cox Is the Sole Owner and Manager of Cox