Response to the following :
Suppose you are starting a business, Web Master, to design Web sites for small businesses in your city. In organizing the business and setting up its accounting records, consider the following:
1. In keeping the books of the business, you must decide the amount to record for assets purchased and liabilities incurred. At what amount should you record assets and liabilities? Which accounting concept or principle provides guidance?
2. Should you account for your personal assets and personal liabilities along with the assets and the liabilities of the business, or should you keep the two sets of records separate? Why? Which accounting concept or principle provides guidance?