All of the following are true statements about the entity assumption EXCEPT for:
A)the entity assumption draws a sharp boundary around each entity.
B)the transactions of the business cannot be combined with the transactions of the owner.
C)the entity assumption ensures that the business will continue indefinitely.
D)under the entity assumption,the entity is any organization that stands apart as a separate economic unit.

Question

Quizplus · Accepted Answer

The entity assumption does not ensure that the business will continue indefinitely. Instead, it assumes that the business will exist as a separate economic unit for the foreseeable future. However, there is no guarantee that the business will continue to operate indefinitely.

All of the Following Are True Statements About the Entity