Asked by
Mohamad Fahmy
on Nov 14, 2024Verified
A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the
A) stand alone concept.
B) monetary unit assumption.
C) corporate form of ownership.
D) economic entity assumption.
Economic Entity Assumption
An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.
Basic Assumption
Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.
Corporate Form
The structure of a corporation, recognized by law as a single entity separate from its owners, with its own rights, privileges, and liabilities.
- Comprehend the economic entity assumption principle and its consequences for accounting methodologies.
Verified Answer
BS
Learning Objectives
- Comprehend the economic entity assumption principle and its consequences for accounting methodologies.