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Business Entity Assumption
An accounting principle that treats a company's operations as separate from its owners or other businesses.
Personal Assets
Items of value owned by an individual, including real estate, bank accounts, investments, and personal property.
Objectivity Principle
The objectivity principle in accounting states that financial information presented in the accounts of a business should be based on objective evidence and be verifiable, avoiding personal opinions or biases.
External Users
individuals or entities outside of a company who use its financial information, such as investors, creditors, and government agencies.
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