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 relates to separating the reporting of business and personal economic transactions. This concept requires that the financial affairs of a business are kept separate from the personal affairs of its owner(s). This enables businesses to report financial information accurately and make informed decisions based on that information. The other concepts listed relate to different aspects of accounting such as valuation of assets (Cost Concept), measurement of financial transactions (Unit of Measure Concept), and ensuring unbiased reporting (Objectivity Concept).

Which of the Following Concepts Relates to Separating the Reporting