The Economic Entity Assumption

question 10

Multiple Choice

The economic entity assumption

• A) is inapplicable to unincorporated businesses.
• B) recognizes the legal aspects of business organizations.
• C) requires periodic income measurement.
• D) is applicable to all forms of business organizations.

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Definitions:

Physical Restraint

Physical Restraint involves the use of physical measures or devices to limit an individual's movements for safety or control reasons.

Innocent Dissemination

A defense in libel and defamation cases, arguing that the distributor of the defamatory material was unaware of its content and thus not liable.

Online Service Providers

Companies or individuals that offer services over the internet, such as web hosting, email, and social networking services.

Liability

A legal responsibility for something, particularly for costs, damages, or debts.