Question

Marsha Bogswell is the sole stockholder of Bogswell Legal Services. Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services?

Answer 1

Answer:

Business entity principle

Explanation:

Business entity principle is an accounting principle which insists that business accounts should be separated from its owners personal account and also that the accounts of separate business even though owned by the same individual should be handled separately.