Question

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

a. True
b. False

Answer 1

Answer:

The correct answer is letter "A": True.

Explanation:

In Accounting, the entity principle states that the activities of the company must be recorded separately from the activities of the company's owners. By doing so, all the assets and liabilities of the firm will be excluded from the ones that the owners possess.