In preparing accounting records, the owner of a business and the business are treated as
Answer Details
In preparing accounting records, the owner of a business and the business are treated as separate legal entities. This means that the business is considered as a separate entity from the owner for accounting purposes. The financial transactions of the business are recorded separately from the personal transactions of the owner. The business is required to keep its own set of accounting records and financial statements, such as a balance sheet and income statement, to report its financial performance and position. This is important for legal, tax, and financial reporting purposes. It also helps to provide clarity and transparency in the financial affairs of the business, and enables the owner to make informed business decisions based on accurate and reliable financial information.