Without the business entity convention, which item in the statement of financial position would not exist?
A)Assets.
B)Equity.
C)Liabilities.
D)Cash at bank.

Question

Quizplus · Accepted Answer

Without the business entity convention, equity would not exist as it represents the claims of the owners or shareholders on the assets of the business. Assets and liabilities exist independent of the convention, and cash at bank is a specific asset.

Without the Business Entity Convention, Which Item in the Statement