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The Business Entity Assumption Means That a Business Is Accounted

question 278

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


Definitions:

Net Income

Net income refers to the total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Accounts

Financial records that track the transactions and balances of specific assets, liabilities, revenues, or expenses.

Balances

The amounts of money recorded in financial accounts, reflecting the difference between credits and debits.

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