business entity concept(GAAP)
Bob business has been failing so he seek helps from Jim who is also a business owner. Jim business is blooming with investors.
hey Jim I see that your business has been doing well
oh yes I have a pretty good balance sheet for my business
why is your personal car on here?
It's one of my assets is it a problem?
you have to follow GAAP when doing your financial records, the business entity principle clearly states that your personal assets should be separate from those of the business
thank you bob ,now I know I'll be sure to not include them in my future records
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