COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government agency responsible for the collection of tax and enforcement of tax laws.
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The principle that requires every business to be accounted for separately from its owner or owners; based on the goal of providing relevant information about each business to users
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Detailed explanation-1: -The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.
Detailed explanation-2: -The economic entity principle is an accounting principle that states that a business entity’s finances should be keep separate from those of the owner, partners, shareholders, or related businesses.
Detailed explanation-3: -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-4: -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-5: -The economic entity principle states that the recorded activities of a business entity should be kept separate from the recorded activities of its owner(s) and any other business entities.