Asked by
Reina Maldonado-Rico
on Nov 18, 2024Verified
Which of the following items relates to separating the reporting of business and personal economic transactions?
A) cost principle
B) monetary unit assumption
C) business entity assumption
D) measurement principle
Business Entity Assumption
A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business.
Economic Transactions
Acts of buying, selling, or trading goods, services, or financial assets in the economy.
Cost Principle
An accounting principle that states all goods and services purchased by a business must be recorded at their historical cost, not their current value.
- Acquire knowledge about the business entity assumption and its critical role in accounting.
Verified Answer
NG
Learning Objectives
- Acquire knowledge about the business entity assumption and its critical role in accounting.