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    Question

    Which principle requires that the financial affairs of

    the business must be kept separate from the personal affairs of the owner(s)?
    A Going concern principle Correct Answer Incorrect Answer
    B Entity principle Correct Answer Incorrect Answer
    C Consistency principle Correct Answer Incorrect Answer
    D Materiality principle Correct Answer Incorrect Answer

    Solution

    The entity principle requires that the financial affairs of the business must be kept separate from the personal affairs of the owner(s).

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