Multiple choice

“Business unit is separate and distinct from the person who supplies capital to it”, is based on

  1. money measurement concept

  2. going concern concept

  3. business entity concept

  4. dual aspect concept
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The business entity concept states that a business is a separate accounting entity distinct from its owners, regardless of legal form. This means business transactions must be recorded separately from personal transactions of the owner(s) who supplied capital. It's foundational to proper accounting records.

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