The economic entity assumption
A) is inapplicable to unincorporated businesses.
B) recognizes the legal aspects of business organizations.
C) requires periodic income measurement.
D) is applicable to all forms of business organizations.

Question

Quizplus · Accepted Answer

The economic entity assumption is applicable to all forms of business organizations, both incorporated and unincorporated. It recognizes that each business is a separate economic unit, and should be treated as such in the preparation of financial statements.

The Economic Entity Assumption