BUSINESS ENTITY PRINCIPLE Definition

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BUSINESS ENTITY PRINCIPLE is where the business is seen as an entity separate from its owner(s) that keeps and presents financial records and prepares the final accounts and financial statements. The accounting is kept for each entity as a whole (groups of companies must present consolidated accounts and consolidated financial statements).

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COST is the amount of money that must be paid to take ownership of something; expense or purchase price.

EOQ is Economic Order Quantity.

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