Which of the following assumptions implies that the assets and liabilities of the business are accounted for separately from the assets and liabilities of the owners?

  1. Historical cost principle.
  2. Continuity assumption.
  3. Monetary unit assumption.
  4. Separate entity assumption.

Answer d. Separate entity assumption

Explanation: A separate business entity assumption implies the idea that all business-related establishments ought to be represented independently. This thought may likewise be known as the economic entity assumption, and it places that all organisations, other related organisations, and entrepreneurs ought to be represented independently.

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