A local businessman owns several different companies. His accountant prepares separate financial statements for each of these businesses. This is an application of the
A. full disclosure principle.
B. periodicity assumption.
C. going concern assumption.
D. economic entity assumption.
Answer:D
A local businessman owns several different companies. His accountant prepares separate financial statements for each of these businesses. This is an application of the
A. full disclosure principle. B. periodicity assumption. C. going concern assumption. D. economic entity assumption.