Which assumption is applied when Laramie recognizes the operations of its wholly owned subsidiary, Big Sky, separately and distinctly from its own operations?
A)Economic entity assumption
B)Going concern assumption
C)Fiscal period assumption
D)The subsidiary stability assumption

Question

Quizplus · Accepted Answer

The economic entity assumption assumes that the business is separate from its owners and other businesses. By recognizing the operations of its wholly owned subsidiary, Big Sky, separately and distinctly from its own operations, Laramie is adhering to this assumption.

Which Assumption Is Applied When Laramie Recognizes the Operations of Its