Accounting Entity
Barron's Accounting Dictionary:
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Accounting Entity
Business or other economic unit (including subdivisions) being accounted for separately. A system of accounts is kept for the entity. An accounting entity is isolated so that recording and reporting for it are possible. Examples of accounting entities are corporations, partnerships, trusts, and industry segments. A distinction should be made between an accounting entity and a legal entity. For example, a proprietor's accounting entity might be the business whereas the legal entity would include personal assets. Also, in the corporate environment, affiliated companies can be differently organized for legal and accounting purposes (e.g., industry segments).
See also consolidated financial statement.
See also consolidated financial statement.
| Accounting Cycle, Accounting Cushion, Accounting Convention | |
| Accounting Equation, Accounting Error, Accounting Event |
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Accounting Entity
Investopedia Financial Dictionary:
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Accounting Entity
A clearly defined economics unit that is accounted for separately. An accounting entity can be either a business or subdivision of a business that engages in economic activities, has economic assets and resources that must be accounted, and is separate from the personal dealings of its owners. Once an accounting entity is determined, transactions within the specific unit are accounted. The entity should not be flexible or regularly changed, in order to insure the accuracy of accounting.
Also known as a “reporting entity”.
Investopedia Says:
Accounting entities are separated so that they can be focused in on by an accountant. This enables the accountant to record and report transactions that are specific to that entity. Once an entity is established, accountants are able to determine the cash flows and transactions that will impact the entity’s financial statements.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Accounting Postulate
(in accounting)
Business Combination
(business term)
Entity Accounting
(in accounting)
Consistency
(business term)
Combination
(finance term)
» More