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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DOCUMENT is the written or printed paper that bears information that can be used to furnish decisive evidence. Could also be a recording, computer readable information, or a photograph.

TOTAL LIABILITIES & NET WORTH is the sum of all liability items and Net Worth.

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