Economic entity
Concept in accounting
An economic entity is one of the assumptions made in generally accepted accounting principles. Almost any type of organization or unit in society can be an economic entity. Examples of economic entities in accounting are hospitals, companies, municipalities, and federal agencies.
The "Economic entity assumption" states that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities.
Sources and credits
This article is adapted from the Wikipedia article “Economic entity”, written by its contributors and licensed under CC BY-SA 4.0. Fathomly has changed the layout, removed citation markers, navigation and maintenance notices, and adjusted punctuation. This adapted version is shared under the same license. For references, see the original article.
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