Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 4)

What is the main objective of the business entity principle?
To keep the financial records of a business separate from the owner's personal financial affairs.
To ensure that all financial transactions are recorded accurately and in a timely manner.
To provide a comprehensive and detailed record of all the financial transactions of a business.
To ensure compliance with all relevant accounting standards and regulations.

Explanation

The business entity principle's main objective is to separate the business's financial records from the owner's personal finances.

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