The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities. Group of answer choices False True

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Business

Jay Lester

16 March, 15:29

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities. Group of answer choices False True

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Charlie Skinner · Answer 1

True

Explanation:

The economic entity assumptions simply called entity concept states that business must be treated as a separate entity from the owners. this is one of the fundamental concepts in accounting, the transactions carried out for the personal interest and benefit of the owner must be separated from the books of the business, The transactions that must be recorded in the business are those transactions that are wholly, and exclusively incurred for the benefit of the business.