Question

According to which concept,even the proprietor of business is treated as creditor to the extent of his capital.



Money measurement concept .

Dual concept.

Business Entity concept.

Cost concept.

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Answer 1

Answer:

it is according to business entity concept that even the proprietor of the business is treated as an outsider

Answer 2

Business entity concept for proprietor of business id treated as creditor to extend of his capital.

Explanation:

• According to the notion of a business entity, the business and its owner(s) are distinct entities.
• Even for the simplest of businesse a sole proprietorship the financial records must be maintained apart from the owners' personal matters.
• According to the idea of a business entity, the firm and its owners are two distinct legal entities.
• According to the entity view, the business enterprise is an institution in and of itself, separate and apart from the people providing the funds.
• A sole proprietorship or sole trader is an example

Final answer:

Business entity concept is used for proprietor of business

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