The economic entity assumption states that economic events
A) of different entities can be combined if all the entities are corporations.
B) must be reported to the IASB.
C) of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
D) of every entity can be separately identified and accounted for.

Question

Quizplus · Accepted Answer

The economic entity assumption states that every entity can be separately identified and accounted for. This means that economic events of a business should be kept separate from those of its owners, and the economic events of one business should not be combined with those of another.

The Economic Entity Assumption States That Economic Events