Which of the following concepts relates to separating the reporting of business and personal economic transactions?
A) cost concept
B) unit of measure concept
C) business entity concept
D) objectivity concept

Question

Quizplus · Accepted Answer

The business entity concept states that a business should be considered a separate entity from its owner(s) and that its financial transactions should be recorded separately. This means that personal economic transactions of the owner(s) should not be mixed with business transactions in the financial records. Therefore, separating the reporting of business and personal economic transactions is related to the business entity concept.

Which of the Following Concepts Relates to Separating the Reporting