Distinguish Between an Entity Class and an Entity Instance

question 92

Essay

Distinguish between an entity class and an entity instance.

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Definitions:

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the foundation for double-entry bookkeeping.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as stationery, cleaning products, and office supplies.

Limited Liability Company (LLC)

A company framework that merges the tax responsibilities of a partnership or sole proprietorship with the corporation's benefit of limited liability.

Tax Advantages

Fiscal benefits granted to individuals or businesses, often in the form of deductions, credits, or exemptions, to encourage certain activities or investments.