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

Raina Parsons

Mathematics

17 November, 22:22

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.

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Cason Chavez · 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.