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12. Which of the following accounting concepts requires that business records be kept separate

from the owners personal records?
a Matching
b. Business entity
c. Cost
d. Revenue recognition

User DvdRom
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1 Answer

3 votes

Answer:

b. Business entity

Step-by-step explanation:

The business entity concept asserts that the transactions of any form of a business ownership must be in separate records from those of its owners. A business should only record activities that relate to business transactions.

The sole proprietorship is the simplest type of business ownership. Its owner must keep a separate record for his or her expenses, and another one for the business. A mix up of transaction will make the accounting information loses its credibility and usability. In other words, the business report will not reflect the actual performance of the business.

User Felix Cen
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