Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?

A) Monetary unit assumption.
B) Continuity assumption.
C) Historical cost principle.
D) Separate entity assumption.

Question

Kharee McDaniel · Accepted Answer

Final Answer : D, Explanation :  The Separate Entity Assumption implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners. This means that the personal assets of the owners are not included in the financial statements of the business, and vice versa.

Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?

A) Monetary unit assumption.
B) Continuity assumption.
C) Historical cost principle.
D) Separate entity assumption.

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Learning Objectives

Related questions

Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?A) Monetary unit assumption.B) Continuity assumption.C) Historical cost principle.D) Separate entity assumption.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?

A) Monetary unit assumption.
B) Continuity assumption.
C) Historical cost principle.
D) Separate entity assumption.