BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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proprietorship
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partnership.
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corporation.
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joint venture.
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Detailed explanation-1: -The economic entity principle states that the recorded activities of a business entity should be kept separate from the recorded activities of its owner(s) and any other business entities.
Detailed explanation-2: -Business entity assumption, sometimes referred to as separate entity assumption or the economic entity concept, is an accounting principal that states that the financial records of any business must be kept separate from those of its owners or any other business.
Detailed explanation-3: -The final goal of the matching principle is to be able to look at an income statement and know how much revenue was performed during the year and to also see the expenses we incurred to produce that revenue.
Detailed explanation-4: -The going concern principle is the assumption that a business will continue to exist in the near future, in other words, that it will not liquidate or be forced out of business.