Personal living expenses are kept separate from the expenses of the business

A) accounts payable
B) assets
C) corporation
D) cost
E) economic entity assumption
F) liabilities
G) market value
H) monetary unit assumption
I) note payable
J) (paid-in) capital
K) partnership
L) proprietorship
M) retained earnings
N) stockholders' equity

Question

​Personal living expenses are kept separate from the expenses of the businessA) accounts payableB) ​assetsC) ​corporationD) ​costE) ​economic entity assumptionF) ​liabilitiesG) ​market valueH) ​monetary unit assumptionI) ​note payableJ) ​(paid-in) capitalK) ​partnershipL) ​proprietorshipM) ​retained earningsN) stockholders' equity

Zybrea Knight · Accepted Answer

Final Answer : E, Explanation :  The economic entity assumption is a fundamental accounting principle that states a business's financial transactions should be kept separate from the personal financial transactions of its owners or other businesses. This ensures clear and accurate financial reporting.

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