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Question
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
Options
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
Solution
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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