The business entity assumption:
A. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
B. Means that a business is accounted for separately from other business entities, including its owners.
C. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
D. Means that we can express transactions and events in monetary, or money, units.
E. Prescribes that a company record the expenses it incurred to generate the revenue reported.
Answer: B
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