The Economic Entity Assumption States That Economic Events

question 117

Multiple Choice

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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Definitions:

Foundational Values

Core beliefs and principles that form the underpinning for organizational culture, decision-making, and strategies.

Identify

To establish the identity of someone or something, recognizing them as distinct or unique.

Intentional Deception

The act of deliberately misleading or lying to others, potentially to gain an advantage or hide information.

Unfair Economic Advantage

A situation where a business or country gains a superior position in the market or economy through unethical, illegal, or inequitable practices.