Asked by Jaliyah Henderson on Jul 08, 2024
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The business entity assumption:
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Means that we can express transactions and events in monetary,or money,units.
C) Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods.
D) Means that a business is accounted for separately from other business entities,including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.
Business Entity Assumption
A fundamental accounting principle that treats the transactions of a business separately from those of its owners or other businesses.
Accounting Information
Data generated from the accounting processes of a company, including financial statements and records that inform stakeholders about its financial performance.
Business Entities
Legal structures that are allowed to engage in business, such as corporations, partnerships, and sole proprietorships.
- Familiarize yourself with the essential doctrines of accounting, notably the going concern and the business entity assumptions.
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Learning Objectives
- Familiarize yourself with the essential doctrines of accounting, notably the going concern and the business entity assumptions.
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