Business is treated as a separate entity accounts for __________.

Sole trader

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Partnership

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Company

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All of the above

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Solution

The correct option is D All of the above
Separate entity concept defines that the owner and business are having a separate legal entity in the eye of law. Any amount contributed by the owner is considered as liability to the business.

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Similar questions

Q. The concept of treating the business as a separate entity is called __________________.

Q. a) From legal point of view, a joint stock company is recognised as separate legal entity from the shareholders.
b) Partnership firms and sole trading businesses do not have legal entity, but they have business entity for accounting purposes.
Of these

Statement A: The owner and business are two separate entities. This is covered by Business Entity concept.

Statement B: Cost concept covers that the books of account are prepared at a certain frequency.

Q. gives a snapshot of the balances of all the accounts of a business entity.

Q. According to "Business entity concept", business is treated as separate from its _______________.

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Business is treated as a separate entity accounts for __________.

The correct option is D All of the aboveSeparate entity concept defines that the owner and business are having a separate legal entity in the eye of law. Any amount contributed by the owner is considered as liability to the business.

The correct option is D All of the above
Separate entity concept defines that the owner and business are having a separate legal entity in the eye of law. Any amount contributed by the owner is considered as liability to the business.