The concept that economic activity, which can be identified with a particular company must be kept separate and distinct from the owner(s) and from all other economic entities is known as
A)the separation concept.
B)the reporting entity concept.
C)the economic concept.
D)the business organization concept.

Question

Quizplus · Accepted Answer

The reporting entity concept is the accounting principle that the financial activities of a business must be kept separate and distinct from the personal financial activities of its owner(s) or any other business entity. This ensures that the financial statements of the business accurately reflect its financial performance and position.

The Concept That Economic Activity, Which Can Be Identified with a Particular