Match the terms with the definitions.

-The concept that nonbusiness assets and liabilities are not included in the business' accounting records.
A) account
B) accounts payable
C) accounts receivable
D) accounting equation
E) assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity

Question

Match the terms with the definitions.

-The concept that nonbusiness assets and liabilities are not included in the business' accounting records.
A) account
B) accounts payable
C) accounts receivable
D) accounting equation
E) assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity

Quizplus · Accepted Answer

The business entity concept states that the business and its owner(s) are separate entities, so the personal assets and liabilities of the owner(s) are not included in the business's accounting records.

Match the Terms with the Definitions