1. The problem asks which accounting concept applies when the owner takes goods from inventory for personal use. 2. Let's review the options: - Prudence concept: This involves recognizing expenses and liabilities as soon as possible, but revenues only when they are assured. - Capitalisation concept: This relates to recording expenses as assets if they provide future benefits. - Money measurement concept: This states that only transactions measurable in monetary terms are recorded. - Separate entity concept: This treats the business and the owner as separate entities for accounting purposes. 3. When the owner takes goods for personal use, it affects the business's inventory and owner's equity separately. 4. Therefore, the Separate entity concept is the correct accounting principle here because it distinguishes between the business's transactions and the owner's personal transactions. Final answer: 4. Separate entity concept