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.

---

Definitions:

Minimum Wage

The lowest legally permissible hourly wage that companies can pay to employees.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing essential data related to labor economics, including employment, unemployment, and price statistics.

Labor Force

The total number of people who are currently employed or actively seeking employment within an economy.

Bureau of Labor Statistics

A U.S. government agency that collects, analyzes, and disseminates essential economic information to support public and private decision-making.