Economic entity assumption – what is it?

Subject: Economics

Info

Published: September 23, 2022
Updated: September 23, 2022
University / College: University of Rochester
Language: English
Downloads: 42

Economic entity assumption is a fundamental accounting rule which helps the accountant to separate the business transaction which refers to the owner of the company from his or her personal transaction. However, it is not legally allowed to tell apart the only ownership from the proprietor himself or herself. This principle states that all the transactional info which belongs to the entity is not connected to the additional transactions related to the company’s business partners of the owner

ECONOMIC ENTITY ASSUMPTION requires that the accounts of an entity will be kept separate from the entity of its owners.

Thank's for Your Vote!

This work, titled "Economic entity assumption – what is it?" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal

Cite this Research Paper

References

AssignBuster. (2022) 'Economic entity assumption – what is it'. 23 September.

Reference

AssignBuster. (2022, September 23). Economic entity assumption – what is it? Retrieved from https://assignbuster.com/economic-entity-assumption-what-is-it/

References

AssignBuster. 2022. "Economic entity assumption – what is it?" September 23, 2022. https://assignbuster.com/economic-entity-assumption-what-is-it/.

1. AssignBuster. "Economic entity assumption – what is it?" September 23, 2022. https://assignbuster.com/economic-entity-assumption-what-is-it/.

Bibliography

AssignBuster. "Economic entity assumption – what is it?" September 23, 2022. https://assignbuster.com/economic-entity-assumption-what-is-it/.

Work Cited

"Economic entity assumption – what is it?" AssignBuster, 23 Sept. 2022, assignbuster.com/economic-entity-assumption-what-is-it/.

Get in Touch

Please, let us know if you have any ideas on improving Economic entity assumption – what is it?, or our service. We will be happy to hear what you think: [email protected]