Question

accounting to business entity concept:
A business is not treated as a spirited you need for it owner
B business is treated as a a spirited unit from its owner
C the period of business unit is for three year
D the period of business unit is for 5 year​

Answer 1

• In accounting, a business or an organization and its owners are treated as two separately identifiable parties. This is called the entity concept. The business stands apart from other organizations as a separate economic unit.
• The accounting entity concept (or entity concept or separate entity concept) is the principle that financial records are prepared for a distinct unit or entity regarded as separate from the individuals that own it.

Answer 2

Answer:

The concept of business entity assumes that business has a distinct and separate entity from its owners. It means that for the purposes of accounting, the business and its owners are to be treated as two separate entities. Keeping this in view, when a person brings in some money as capital into his business, in accounting records, it is treated as liability of the business to the owner. 

Here, one separate entity (owner) is assumed to be giving money to another distinct entity (business unit). 

Similarly, when the owner withdraws any money from the business for his personal expenses (drawings), it is treated as reduction of the owner’s capital and consequently a reduction in the liabilities of the business.

Hence, the proprietor is treated as a creditor to the extent of his capital.