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 mingled 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 guarantee that the business will continue indefinitely. It only assumes that the business exists as a separate economic unit, regardless of how long it will continue to exist.

All of the Following Are True Statements About the Entity