Suppose you are starting a business, T-Shirts Plus, to imprint logos on T-shirts. In organizing the business and setting up its accounting records, consider the following:

1. Should you combine your personal assets and personal liabilities 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?

2. In keeping the books of T-Shirts Plus, you must decide the amount to record for assets and liabilities. At what amount should you record assets and liabilities? Which accounting concept or principle provides guidance?