The Assumption That Requires That a Business Be Accounted for Separately

question 137

Short Answer

The assumption that requires that a business be accounted for separately from its owners is the
________ assumption.

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Definitions:

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual transactions affecting a control account in the general ledger, such as accounts receivable or accounts payable.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, serving as the main accounting record.

Special Journals

Accounting records that are used for the repeated recording of similar types of transactions, such as sales or purchases.

Control Accounts

An account in the general ledger that summarizes and aggregates the details of a subsidiary ledger.