Answered: Why is Accounting Entity Concept an…

Why is Accounting Entity Concept an important principle of accounting that a business should follow especially if it is a sole-proprietorship business?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 5Q: Explain the concept of equity, and identify some activities that affect equity of a business.

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Similar questions

Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
List the three basic questions that must be answered when analyzing the effects of a business transaction on the accounting equation.
That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
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Explain the concept of equity, and identify some activities that affect equity of a business.
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