Which accounting concept states that a business and its owner are not the same?

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1201547

2026-03-14 13:20

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The accounting concept that states a business and its owner are not the same is known as the "business entity concept." This principle maintains that a business's financial transactions should be recorded separately from the personal transactions of its owners or stakeholders. This separation ensures accurate financial reporting and helps protect the owner's personal assets from business liabilities.

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