The economic entity assumption states that economic events A. of different entities can be combined if all the entities are corporations. B. must be reported to the IASB. C. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. D. of every entity can be separately identified and accounted for.

Question

Mathematics

Chandler Shaffer

6 May, 04:02

The economic entity assumption states that economic events A. of different entities can be combined if all the entities are corporations. B. must be reported to the IASB. C. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. D. of every entity can be separately identified and accounted for.

+1

Answers (1)

Know the Answer?

Sylvia Lambert · Answer 1

D. of every entity can be separately identified and accounted for.

Step-by-step explanation:

The economic entity assumption states that each business entity must be differentiated from others for the purpose of accounting, meaning that a business is only allowed to present information as it relates to its business activities and not otherwise. Economic entity as an accounting principle differentiate business transactions carried out by a business entity from that of its owner.