BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The business entity concept states that the business is separate from the owner(s) of the business. Therefore the accounting records for even the simplest business, the sole trader, must be kept separate from the personal affairs of the owner or owners.

Detailed explanation-2: -Financial information is recorded and reported separately from the owner’s personal financial information. Business transactions are stated in numbers that have common values: that is, using a common unit of measurement. The same accounting procedures are followed in the same way in each accouting period.

Detailed explanation-3: -Business entity concept is one of the accounting concepts that states that business and the owner are two separate entities and therefore, should be considered separate from each other.

Detailed explanation-4: -Business entity concept This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities. Thus, the business and personal transactions of its owner are separate.