Accountancy, asked by HarshitaGupt, 10 months ago

Accounting to which concept business is treated as a unit apart from owner


abhaysingh123: separate entity concept

Answers

Answered by gopalsibapaul01
0

Answer:

This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities. Thus, the business and personal transactions of its owner are separate. For example, when the owner invests money in the business, it is recorded as liability of the business to the owner.

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