It is assumed that the activities of Ford Motor Company can be distinguished from those of General Motors because of the

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The economic entity assumption states that the activities of a business entity can be separated from those of its owners, managers, or other businesses. Therefore, Ford Motor Company and General Motors are separate economic entities with distinguishable activities. The other assumptions - going concern assumption, monetary unit assumption, and periodicity assumption - are not relevant to distinguishing the activities of these two companies.

It Is Assumed That the Activities of Ford Motor Company