The proprietor of the business is treated as creditor for the capital introduced by him due to conce...........

Principles of Accounting & Financial Management Concepts of Accounting

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The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept.

Money measurement

Cost

Entity

Dual aspect

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Explanation:

An accounting entity is a clearly defined economic unit that isolates the accounting of certain transactions from other subdivisions or accounting entities. An accounting entity can be a corporation or sole proprietorship as well as a subsidiary within a corporation. However, the accounting entity must have a separate set of books or records detailing its assets and liabilities from those of the owner.

An accounting entity is part of the business entity concept, which maintains that the financial transactions and accounting records of owners and entities cannot be intermingled.