Advertisements
Advertisements
प्रश्न
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
विकल्प
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
Advertisements
उत्तर
Business entity concept
Explanation:
According to the business entity concept, a business is treated as a separate and distinct unit from its owners. This means that the business's financial transactions are recorded separately from the personal transactions of the owners. This concept ensures clarity and accuracy in financial reporting by keeping the business's financial activities distinct from those of its owners.
APPEARS IN
संबंधित प्रश्न
Define the term GAAP.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
According to Business Entity Concept:
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Fixed assets should be valued at the market price." Comment.
Explain any two basic concepts of accounting.
Explain matching principle of accounting.
Explain the expense principle.
