Final answer:
The concept that relates to separating the reporting of business and personal economic transactions is separate entity concept.
Step-by-step explanation:
The concept that relates to separating the reporting of business and personal economic transactions is separate entity concept.
According to this concept, a business is treated as a separate entity from its owner(s). It means that the financial transactions of the business and the personal financial transactions of the owner(s) should be kept separate and recorded separately.
For example, if a business owner uses their personal funds to pay for a business expense, it should be recorded as a loan from the owner to the business, and not treated as an expense of the business. This concept helps ensure accurate financial reporting and provides clarity about the financial position of the business.