Final answer:
The accounting concept stating that an organization is a separate entity from other organizations and individuals is the entity assumption. It ensures separate financial records for clear and accurate financial reporting.
Step-by-step explanation:
The accounting concept that maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the entity assumption. This assumption treats a business as an entity separate from its owner or any other business, meaning that the personal finances of the owners are not commingled with the business finances for accounting purposes. Each entity's financial transactions are recorded and reported separately which helps to provide clear and accurate financial information about that specific organization.