GCEFinancial AccountingAccounting Concepts and Conventions2021

Which accounting concept requires that a business should be treated as a separate entity from its owner?

AGoing concern concept
BBusiness entity conceptCORRECT
CAccrual concept
DConsistency concept
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Why the answer is B, and why the others tempt you.
The business entity concept holds that a business is a distinct legal and accounting unit separate from its owner(s). This means the personal transactions of the owner are kept separate from the business transactions. It forms the basis for preparing financial statements that reflect only the affairs of the business.
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