A Basic Assumption of Accounting That Requires Activities of an Entity

question 3

Multiple Choice

A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the

• A) stand alone concept.
• B) monetary unit assumption.
• C) corporate form of ownership.
• D) economic entity assumption.

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Definitions:

Per Unit

A term used to express costs, prices, or other measurements on an individual basis, allowing for straightforward comparisons or calculations.

Payroll Tax

Assessments collected from employers or employees, typically proportional to the salaries that workers are paid.

Labor Market

A marketplace where employers find workers and workers find jobs, involving the exchange of labor for compensation.

Payroll Tax

A tax imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.