According to which of the following concepts even the proprietor of the business is treated as...........

Principles of Accounting & Financial Management Concepts of Accounting

According to which of the following concepts, even the proprietor of the business is treated as a creditor of the business?

Money measurement concept

Cost concept

dual aspect concept

Business Entity concept

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Explanation:

The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner. Without this concept, the records of multiple entities would be intermingled, making it quite difficult to discern the financial or taxable results of a single business.