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:
A)Monetary unit assumption.
B)Economic entity assumption.
C)Going concern assumption.

Question

Quizplus · Accepted Answer

The economic entity assumption states that the business is separate from the personal affairs of the owner, and this includes the accounting of assets and liabilities. The monetary unit assumption assumes that only transactions that can be expressed in monetary units are recorded, and the going concern assumption assumes that the business will continue to operate in the foreseeable future.

The Assumption That the Assets and Liabilities of the Business