Question

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:
A. Objectivity principle B. Realization principle C. Business entity principle
D. Going-concern principle
E. Revenue recognition principle

Answer 1

Answer:

C. Business entity principle

Explanation:

• A business entity principle is one that states the transactions that are linked to a business must have a separate record-keeping and form those who are owners of the other business.

• Thus separates the records for the organization of the business and excludes the assets and the liabilities of the other owners of the business.