From an accounting viewpoint,when is a business considered as an entity separate from its owner(s)?
A)Only when organized as a sole proprietorship.
B)Only when organized as a partnership.
C)Only when organized as a corporation.
D)A business is always considered as an accounting entity separate from the activities of the owner(s).

Question

Quizplus · Accepted Answer

In accounting, a business is always considered a separate entity from its owners, regardless of its organizational structure. This principle is known as the business entity concept, which states that the business and its owners are separate entities for accounting purposes, allowing for clearer financial reporting and analysis.

From an Accounting Viewpoint,when Is a Business Considered as an Entity