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

Question

Business

Kayden Alexander

6 February, 05:53

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

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Answers (1)

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Jaylon Stokes · Answer 1

The correct answer is that the every entity could be separately accounted as well as identified for.

Explanation:

The accounting guideline or the principle, which allows the accountant who keep the transactions of the sole proprietor of the business separate from the personal transactions of the owner, though the sole proprietorship is not legally separate from the owner.

So, the assumption of the economic entity, states or define that the every entity could be separately accounted as well as identified for or in short, it is that entity to kept separate from the owner activities.