An accounting entity may best be described as:
A) An individual.
B) A particular economic unit.
C) A publicly owned corporation.
D) Any corporation, regardless of size.

Question

Quizplus · Accepted Answer

An accounting entity refers to a specific economic unit that is separate and distinct from the individuals who own or operate it. This could include a sole proprietorship, partnership, corporation, or any other entity that engages in economic activity. It is this entity that has separate financial records, including assets, liabilities, revenues, and expenses, which are used to determine its financial performance and position.

An Accounting Entity May Best Be Described As