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प्रश्न
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
पर्याय
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
उत्तर
Business entity concept
Explanation:
According to the business entity concept, a business is treated as a separate and distinct unit from its owners. This means that the business's financial transactions are recorded separately from the personal transactions of the owners. This concept ensures clarity and accuracy in financial reporting by keeping the business's financial activities distinct from those of its owners.
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संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the need for GAAP for accounting.
This concept assumes that the business will continue to exist for a long time in the future.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
"Firms live forever." Explain with reference to the concept of accounting.
What is meant by going concern concept of Accounting.
Name the basic principles of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"Every transaction affects at least three accounts." Comment.
Explain any two basic concepts of accounting.
