passwella.
Menu

WAEC Financial Accounting 2011 Question 46

Question 46

Accounting Concepts and Conventions

The business entity concept

  1. A.separates the owner's transactions from the business transactions
  2. B.records transactions outside the business
  3. C.does not separate the owner's transactions from the business transactions
  4. D.involves other business transactions
Show the answer and explanation

Answer: A (separates the owner's transactions from the business transactions)

Explanation

The business is treated as separate from its owner, so only business transactions are recorded.