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 Securities and Exchange Commission.
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 requires that the financial activities of a business be kept separate from the personal financial activities of its owners or other businesses.

The Economic Entity Assumption States That Economic Events