Bookkeeping Basics | Online Course Support

Caren Cosmos is the world’s most popular soft rock folk singer. She sold t-shirts online last year and made $7,000. The money from these sales went directly into her personal banking account which she used for her personal needs. Which key accounting assumption did Caren ignore? 

 
 
Correct

Correct! The Entity Assumption reminds us to keep business finances separate from personal finances.

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