The assumption that the assets and liabilities of the business are accounted for on the books of the company but not included in the records of the owner is the:

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The economic entity assumption recognizes that the business entity is separate and distinct from the individual who owns it, and therefore, its financial transactions must be recorded separately from the personal transactions of the owner. This means that all the assets and liabilities of the business should be recorded in the company's books but not in the owner's personal records. The monetary unit assumption refers to the use of a common unit of measurement for financial transactions, the going concern assumption assumes that the business will continue to operate indefinitely, and the periodicity assumption requires that financial statements be prepared at regular intervals (such as monthly, quarterly, or annually) to provide timely information to users.

The Assumption That the Assets and Liabilities of the Business