MrSwitch, a Local Business Man, Owns Two Different Businesses-A Lumber

Multiple Choice

Mr.Switch, a local business man, owns two different businesses-a lumber sawmill and a restaurant.The price of lumber has declined and therefore sawmill is in financial difficulty.However, the restaurant is thriving, and Mr.Switch would like to start paying two of the sawmill employees under the restaurant's payroll.His accountant explains that this is not in accordance with certain basic principles in accounting.Which principle is he referring to?

A) Full disclosure
B) Periodic-reporting assumption
C) Entity concept
D) Unit-of-measure assumption