All of the Following Are True Statements About the Entity

question 92

Multiple Choice

All of the following are true statements about the entity assumption EXCEPT for:

• A)the entity assumption draws a sharp boundary around each entity.
• B)the transactions of the business cannot be combined with the transactions of the owner.
• C)the entity assumption ensures that the business will continue indefinitely.
• D)under the entity assumption,the entity is any organization that stands apart as a separate economic unit.

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Definitions:

Spoils System

A practice where a political party, after winning an election, gives government jobs to its supporters, friends, and relatives as a reward for working toward victory, and as an incentive to keep working for the party.

Civil Service

Employment in public sector organizations, typically within government, where appointments and promotions are determined by merit and qualifications rather than political affiliation.

Office of Personnel Management

A U.S. federal agency that manages the civil service of the federal government, overseeing hiring and qualifications for government jobs.

Pendleton Act

A federal law enacted in 1883 that established that government jobs should be awarded based on merit rather than political affiliation, significantly reforming the civil service system in the United States.