Multiple choice general knowledge

Accountancy treats the proprietor and the business as different entities

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The business entity concept is a fundamental principle in accountancy. It states that the business and its owner are separate entities for accounting purposes, regardless of whether the business is a sole proprietorship. This means owner's personal transactions must be kept separate from business transactions.

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