Answer:
The separate-entity assumption
Explanation:
The separate-entity assumption is a principal in accounting according to which the financial transactions of a business and the personal expenses of the owners is to kept separate from each other. The expenses derived solely for the business is only to be counted under the expenses of the company. Inclusion of any personal expenses of the owner or any partner of the business is prohibited under this principal.
In the given excerpt, the owner of Shady Grove Company had violated the separate-entity assumption by including the expenses of his personal items under the name of the Company.
The policy that is violated by the actions of the owner of Shady Grove Company is the Separate-entity assumption.
This is a assumption in business that the affairs of the business should be treated as separate from the affairs of its owners.
In other words, the personal items and affairs of an owner should not be paid for by the company because the company's monies are meant to further the growth of the company.
Find out more on separate - entity assumption at https://brainly.com/question/13285204.
