The business entity concept means that a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported

Question

Aisha Key

Business

25 February, 12:10

The business entity concept means that a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported

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Jennifer Moran · Answer 1

Answer: Option D

Explanation: In business entity concept, the owner of the entity and entity itself are considered to be two separate units. This rule generally apply for corporations that are registered with the Govt. In such a structure, all of the filings of data will be done on separate basis for both owner and the entity.

Thus, from the above we can conclude that the correct option is D.