The economic entity assumption states that economic events can be identified with a particular unit of accountability.

Question

Quizplus · Accepted Answer

The economic entity assumption is a fundamental accounting principle that assumes that economic events can be identified with a specific entity or unit of accountability, such as a business or an individual. This principle helps to ensure that financial transactions are recorded separately for each entity, providing relevant, accurate, and reliable financial information for decision-making purposes.

The Economic Entity Assumption States That Economic Events Can Be