Asked by Katie Flynn on Jul 17, 2024
Verified
The business entity assumption means that a business is accounted for separately from other business entities,including its owner or owners.
Business Entity Assumption
An accounting principle that treats a business as separate from its owner or any other business.
Business Entities
Business entities refer to legally recognized organizations designed to provide goods or services.
Owners
Owners are individuals or entities that hold legal title to assets, businesses, or property.
- Gain insight into the concepts and principles that support the structure of financial reporting standards.
Verified Answer
AV
Anand VishnuJul 18, 2024
Final Answer :
True
Explanation :
The business entity assumption requires that a business be treated as a separate entity from its owners, meaning it is accounted for and reported on separately from any individuals involved in the business.
Learning Objectives
- Gain insight into the concepts and principles that support the structure of financial reporting standards.
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