The premise of the economic entity assumption is that the activity of a business enterprise should be kept separate and distinct from its owners and other business entities

Question

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The economic entity assumption assumes that the business entity is separate and distinct from its owners and other entities. This means that the transactions and financial statements of the entity should only reflect the business activities of that particular entity and not include any personal transactions of owners or related entities.

The Premise of the Economic Entity Assumption Is That the Activity