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:

Question

Quizplus · Accepted Answer

The economic entity assumption states that the business entity is separate and distinct from the owner(s) and other entities. This means that the assets and liabilities of the business should be accounted for separately from the personal assets and liabilities of the owner(s). Therefore, the answer is C.

The Assumption That the Assets and Liabilities of the Business