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According to which one of the following concepts is business treated apart from its owners?

A. Dual concept
B. Divider concept
C. Entity concept
D. Landlord concept

1 Answer

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Final answer:

The concept that treats business apart from its owners is the Entity concept (C). The Entity concept recognizes a business as a separate and distinct entity from its owners, ensuring accurate financial reporting.

Step-by-step explanation:

According to the given options, the concept that treats business apart from its owners is the Entity concept (C).

The Entity concept is a fundamental principle in accounting that recognizes a business as a separate and distinct entity from its owners. It states that the financial records of a business should be kept separate from the personal financial records of its owners. This concept allows for accurate and reliable financial reporting and analysis of the business's if a business owner invests personal funds into the business, it would be recorded as a capital contribution from the owner to the business, and the business would have a separate bank account and financial statements.

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