Tutorial 1, Week 2 (Homework)[1]

1 should you combine personal assetsliabilities with

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Unformatted text preview: owing. 1. Should you combine personal assets/liabilities with those of the business, or should the two sets of records be kept separate? Why? Which accounting concept or principle provides guidance? Keep your business’s accounting records separate from your personal records so that you can evaluate the success or failure of the business. If your personal records get mixed up with your business’s accounting records, it may become difficult to tell how well the business is performing (entity concept). 2. At what amount should you record assets and...
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