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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:

Pension

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Profit-sharing Plan

A retirement plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company's earnings.

Defined-benefit Plans

Retirement plans that promise a specific pension payment upon retirement, based on salary and years of service.

Definitely Determinable Benefits

Benefits from a pension plan or retirement account that are calculable and guaranteed based on factors like salary history and years of service.

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