Multiple choice

Which accounting concept defines as: 'The business stands apart from other organizations as an economic unit. It is necessary to record the business's transactions to distinguish them from the owner's personal transactions'?

  1. Money Measurement Concept

  2. Business Entity Concept

  3. Accrual Concept

  4. Periodicity Concept

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Business Entity Concept defines as 'The business stands apart from other organizations as an economic unit. It is necessary to record the business's transactions to distinguish them from the owner's personal transactions.'