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    Entity Assumption

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    The entity assumption is one of the most basic accounting assumptions. According to this assumption, an organization is considered as a separate economic unit.

    Consider the aspects of the entity assumption and respond to the following:
    How far does the entity assumption hold true for a proprietorship and a family-controlled business?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:25 am ad1c9bdddf
    https://brainmass.com/business/finance/business-entity-assumption-581236

    Solution Preview

    The entity assumption can hold true for proprietorships and family-controlled businesses because the owner still has the autonomy to report business income on a personal income tax return ...

    Solution Summary

    This solution outlines what the entity assumption holds true for, as well as its variations; included are some examples and explanations.

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