Which accounting assumption requires an accountant to be able to clearly identify the transactions to be recorded, classified and summarised into an entity's financial statements?
A) accrual basis assumption.
B) going concern assumption.
C) accounting equation assumption.
D) accounting entity assumption.

Question

Quizplus · Accepted Answer

The accounting entity assumption requires that an accountant identifies a separate entity for which financial statements are to be prepared. As a result, the transactions should be clearly identified, classified, and summarized into that entity's financial statements.

Which Accounting Assumption Requires an Accountant to Be Able to Clearly