Final answer:
The statement is false; Hector's personal assets and the company's assets are treated separately in financial statements. Even with 100% ownership, the company is seen as a distinct legal entity requiring its own financial statements.
Step-by-step explanation:
The statement that Hector Lopez's company's accountant will prepare only one set of statements that reflects the combined assets of Hector and his company is false. In standard accounting practice, a clear distinction is made between the personal finances of an individual and the financial statements of their company, even if the individual holds a 100% ownership interest in the company. The company is treated as a separate legal entity, which means it requires its own set of financial statements, such as the balance sheet, income statement, and cash flow statement.
These financial statements reflect the company's financial position, performance, and changes in financial position. Hector's personal financial statement would be completely separate. The separation ensures transparency, accountability, and compliance with accounting principles and tax regulations.