The noun STRATIFICATION has 5 senses: 1. the act or process or arranging persons into classes or social strata. 2. the condition of being arranged in social strata or classes within a group.3. forming or depositing in layers. 4. a layered configuration. 5. the placing of seeds in damp sand or sawdust or peat moss in order to preserve them or promote germination. Familiarity information: STRATIFICATION used as a noun is common.ouns denoting acts or actions. Hypernyms (stratification is a kind of...): assortment; categorisation; categorization; classification; compartmentalisation; compartmentalization (the act of distributing things into classes or categories of the same type).
The business entity concept, also known as the economic entity principle, states that all business entities should be accounted for separately. In other words, businesses, related businesses, and the owners should be accounted for separately.
Business Entity Concept. Financial accounting is based on the premise that the transactions and balances of a business entity are to be accounted for separately from its owners. The business entity is therefore considered to be distinct from its owners for the purpose of accounting. Therefore, any personal expenses incurred by owners of a business will not appear in the income statement of the entity.