S1: The Business Entity Concept assumes the business and its owners are the same. S2: The Money Measurement Concept ignores qualitative factors. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: The Business Entity Concept assumes the business and its owners are the same. S2: The Money Measurement Concept ignores qualitative factors. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. Neither S1 nor S2
D. S1 only
Answer: Option B
Solution (By JKSSB Mock Tests)
S1 is incorrect because the Business Entity Concept treats the business and its owners as separate and distinct. S2 is correct as the Money Measurement Concept only records transactions expressible in monetary terms, ignoring qualitative aspects.
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