Question

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.

• A. Statement A: True
  Statement B: True
• B. Statement A: True
  Statement B: False
• C. Statement A: False
  Statement B: False
• D. Statement A: False
  Statement B: True

Answer 1

The correct option is B

Statement A: True
Statement B: False

Business Entity concept covers that a business is separate and distinguishable from its owner.
Accounting period concept covers that the books of accounts are prepared at a certain frequency.