Need for Business Entity Concept
Business Entity Concept is needed for various purposes like as determining the individual financial position of the business, and the comparison between various businesses. This concept is also helpful when it comes to filing taxes, it will be easy and beneficial to file taxes when personal finances are not involved in business finances. Business Entity Concept is also helpful when it comes to dissolving the firm and repayment is to be done among different shareholders, debenture holders, and owners. Owner’s Equity also gets calculated easily when personal finances are not entangled with business finances.