Under what circumstances does the economic entity assumption not apply? 1) When a sole proprietor files for personal bankruptcy affecting the business II) When a corporation issues new shares III) When a partnership adds new partners IV) When a company pays dividends
Under what circumstances does the economic entity assumption not apply? 1) When a sole proprietor files for personal bankruptcy affecting the business II) When a corporation issues new shares III) When a partnership adds new partners IV) When a company pays dividends
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12Q: When does a corporation incur a liability for a dividend?
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Transcribed Image Text:Under what circumstances does the economic
entity assumption not apply?
1) When a sole proprietor files for personal
bankruptcy affecting the business
II) When a corporation issues new shares
III) When a partnership adds new partners
IV) When a company pays dividends
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