Question

Which account principle is violated by including personal expenses of the owner in the business expenses?

Answer 1

separate entity principle .. members are separate from business ..company is separate and members are separate ..

Answer 2

The economic entity principle states that the recorded activities of a business entity need to be unbroken or cut loose the recorded activities of its owner(s) and also the alternative business entities.

This implies that you simply ought to maintain separate accounting records and bank accounts for each entity, and not mix with them the assets and liabilities of its householders or business partners. Also, you wish to associate every business human action with an entity.

A business entity can take a spread of forms, like sole possession, partnership, corporation, or agency.