Answer:
b. Business entity
Explanation:
The business entity concept asserts that the transactions of any form of a business ownership must be in separate records from those of its owners. A business should only record activities that relate to business transactions.
The sole proprietorship is the simplest type of business ownership. Its owner must keep a separate record for his or her expenses, and another one for the business. A mix up of transaction will make the accounting information loses its credibility and usability. In other words, the business report will not reflect the actual performance of the business.
