Accounting · Accounting Concepts

Consider the following statements regarding the Business Entity Concept in accounting: I. The business and its owners are treated as two separate entities, meaning capital brought into the business is recorded as a liability of the business to the owner. II. When an owner withdraws money for personal expenses, it is considered an increase in the business's liabilities. III. Accounting records are crafted from the perspective of the business unit, disregarding the personal assets and transactions of the owner unless they involve business funds. IV. An extension of this concept involves accounting separately for various divisions within a firm, commonly known as Responsibility Accounting. Which of the statements given above are correct?