BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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.

Detailed explanation-2: -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-3: -Going concern concept assumes that a business will run for .

Detailed explanation-4: -The separate entity concept states that we should always separately record the transactions of a business and its owners. The concept is most critical in regard to a sole proprietorship, since this is the situation in which the affairs of the owner and the business are most likely to be intermingled.