1. Economic Entity Assumption
This states that there is a separation between the personal finances of the business owner and the business itself. This ensures that whatever business decisions are there to be made, the personal account of the owner won't have an influence on it.
2. Full Disclosure Principle
This states that all necessary information must be disclosed in the financial statement or the notes section. This is to make sure that the potential investors or stakeholders won't be misled by the information stated in the financial statements.
This states that there is a separation between the personal finances of the business owner and the business itself. This ensures that whatever business decisions are there to be made, the personal account of the owner won't have an influence on it.
2. Full Disclosure Principle
This states that all necessary information must be disclosed in the financial statement or the notes section. This is to make sure that the potential investors or stakeholders won't be misled by the information stated in the financial statements.