Economic entity
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In accounting, an economic entity is one of the assumptions made in generally accepted accounting principles. Basically, any organization or unit in society can be an economic entity.
Examples of economic entities are hospitals, companies, municipalities, and federal agencies.
The "Economic Entity Assumption" says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities.
The business is accounted for separately from other business entities, including its owner. The reason for this is that separate information about each business is necessary for good decisions. Economic entity can be any organization or unit in society.
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