The Business Entity Assumption Means That a Business Is Accounted

question 278

True/False

The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

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Definitions:

Salaries Payable

Liabilities representing the amounts owed to employees for work performed but not yet paid by the end of the accounting period.

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards in the United States.

Operating Activities

Business actions directly related to its primary operations, including production, sales, and delivery of services, generating the majority of a company's cash flow.

Direct Method

A way of presenting a cash flow statement where actual cash flow information from operating activities is disclosed.