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      Question

      Which principle requires that the financial affairs of

      the business must be kept separate from the personal affairs of the owner(s)?
      A Going concern principle Correct Answer Incorrect Answer
      B Entity principle Correct Answer Incorrect Answer
      C Consistency principle Correct Answer Incorrect Answer
      D Materiality principle Correct Answer Incorrect Answer

      Solution

      The entity principle requires that the financial affairs of the business must be kept separate from the personal affairs of the owner(s).

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