Transaction between business and owner are recorded following ____ concept

The correct answer is: B. Business entity

The business entity concept states that a business is a separate entity from its owners. This means that the business's financial statements should only include the business's assets, liabilities, revenues, and expenses, and not the owner's personal assets, liabilities, revenues, and expenses.

The periodicity concept states that financial statements should be prepared for a specific period of time, such as a month, quarter, or year. This allows users of financial statements to compare the financial performance of the business over time.

The prudence concept states that accountants should use caution in recording and reporting financial information. This means that accountants should not overstate the assets or revenues of a business, and should not understate the liabilities or expenses of a business.

The going concern concept states that a business is expected to continue operating for the foreseeable future. This means that accountants should not prepare financial statements that assume that the business will be going out of business in the near future.

I hope this helps!