Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is
A. realisation concept B. entity concept C. going concern concept D. matching concept
Correct Answer: B
Explanation
The entity concept ensures that only the expenses incurred by/for the business, incomes earned by the business, assets acquired for the business and liabilities owed by the business are respectively recorded as expenses, incomes, assets and liabilities in the books of the business.
