Asked by

Anonymous anonymous
on Nov 14, 2024

verifed

Verified

The economic entity assumption requires that the activities

A) of different entities can be combined if all the entities are corporations.
B) must be reported to the Securities and Exchange Commission.
C) of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
D) of an entity be kept separate from the activities of its owner.

Economic Entity Assumption

A fundamental principle in accounting that separates the transactions of a business from those of its owners or other businesses.

Sole Proprietorship

A business structure owned by a single individual, where the owner is personally responsible for all financial obligations and liabilities.

Personal Economic Events

This refers to financial transactions and activities that directly affect an individual's economic situation, such as income, expenditures, savings, and investments.

  • Grasp the principle of economic entity assumption and its implication for accounting practices.
verifed

Verified Answer

AC
Angello CorreaNov 15, 2024
Final Answer:
Get Full Answer