Ans: D) the entity assumption ensures that the business will continue indefinitely.
All of the following are true statements about the entity assumption EXCEPT for:
A) the entity assumption draws a sharp boundary around each entity.
B) the transactions of the business cannot be combined with the transactions of the owner.
C) under the entity assumption, the entity is any organization that stands apart as a separate economic unit.
D) the entity assumption ensures that the business will continue indefinitely.
Business
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Indicate whether the statement is true or false
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An example of an implicit transaction is
A) a cash sale. B) a credit purchase of inventory. C) the receipt of cash in advance of providing services. D) the expiration of prepaid rent. E) a credit sale.
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