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WAEC Financial Accounting 2026 Question 2

Question 2

Accounting Concepts and Conventions

The concept which shows that a business is a body recognized by law is

  1. A.consistency concept
  2. B.materiality concept
  3. C.realization concept
  4. D.entity concept
Show the answer and explanation

Answer: D (entity concept)

Explanation

The entity concept treats the business as separate from its owners, a body of its own.