The personal asset of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

Question

a) cost
b) economic entity
c)  monetary entity

Abdul Rahim Said Rahim · Answer

Personal assets of the owner is not recorded in balance sheet because a business has a separate entity, only assets and liabilities are shown in the B.S owned and related to business.

مستخدم محذوف‎ · Answer

b) economic entity

Bandar AlHadad · Answer

Because of Accounting principle of unity

مستخدم محذوف‎ · Answer

Because, in accounting business itself is a separate identity from its owner and the personal affairs of owner has nothing to do with business even if he owns everything.
And in legal terms any business is also considered as a "person".

manaf almas · Answer

ECONOMIC ENTITY

Khaja Moinuddin · Answer

b) Economic Entity.

ابراهيم بالحمر · Answer

accounting principle of unity
مبدا الوحدة المحاسبية

مستخدم محذوف‎ · Answer

b) Economic Entity.......The "Economic Entity Assumption" says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities.

Nafiha Nasar · Answer

b) Economic entity - Business has a separate legal entity apart from its members.the owner's assets are not shown on the balance sheet of the business.this is true even if the business is a sole proprietorship.

Shahjahan Muhammed Siddiq · Answer

The "Economic Entity Assumption" says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities.
The business is accounted for separately from other business entities, including its owner.
The reason for this is that separate information about each business is necessary for good decisions.

mukkur srinivasan varadhan · Answer

Business Entity concept . Economic entity concept,if it denotes the same thing.

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The personal asset of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

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