Question

Under the business entity concept ________.

• A. Business is treated as a unit or entity different from its owner, manager and partner
• B. No distinction is made between business and its owner
• C. All the transactions are recorded in the books of account from the point of view of businessmen/owner
• D. None of the above

Answer 1

The correct option is A Business is treated as a unit or entity different from its owner, manager and partner

For all accounting purposes, business and business man are considered two different entities. All business transactions are recorded in business books and personal transaction done from business are considered as decrease in owners equity.