The "business entity" concept of accounting indicates that:
A) a successful business will stay in business.
B) assets = liabilities + owners' equity.
C) a business has an existence that is separate from its owner.
D) accounting information must be useful to the owners and managers of businesses.

Question

Quizplus · Accepted Answer

The "business entity" concept of accounting means that the business is considered as a separate legal entity from its owner(s). This concept helps in keeping track of the financial transactions of the business and ensures that the personal transactions of the owner(s) do not mix with the business transactions.

The "Business Entity" Concept of Accounting Indicates That