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According to the Business entity concept,

Select one:
a. None of the above
b. Transactions between the business and its owners are recorded considering them to be one single entity.
c. Transactions between the business and its owners are not recorded.
d. Transactions between the business and its owners are recorded from the business point of view.

1 Answer

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Final answer:

The correct answer is that transactions between the business and its owners are recorded from the business point of view according to the Business entity concept.

Step-by-step explanation:

According to the Business entity concept, the correct answer is: d. Transactions between the business and its owners are recorded from the business point of view. This concept dictates that the business is considered a separate entity from its owners for accounting purposes. This clear separation ensures that all transactions between the business and the owners are treated as if they were with any other external party. Consequently, business financial statements reflect its performance and financial position without being mingled with the personal transactions or affairs of its owners.

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