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Generally Accepted Accounting Principles MCQs
Is explicit business substance separate from workforce undertaking of the proprietor is?
2. Is explicit business substance separate from workforce undertaking of the proprietor is?
- Matching Principle
- Stable Currency Principle
- Objectivity Principle
- Entity Principle
Answer: D) Entity Principle
Explanation:
The economic entity principle is a bookkeeping rule that expresses that a business element's funds should be kept separate from those of the proprietor, accomplices, investors, or related organizations. As per the monetary substance standard, all monetary exchanges should be relegated to a particular business element, and elements can't blend their bookkeeping records, financial balances, resources, or liabilities.