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Reina Maldonado-Rico
on Nov 18, 2024

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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.
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navneet grewalNov 18, 2024
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