From Wikipedia, the free encyclopedia
An Accounting Entity is simply an
Entity for which
accounting records are to be kept.
The main requirements for something to be considered an "accounting entity" are:
- It can own
property the value of which can be measured in financial terms
- It can incur
debts or
liabilities which can also be measured in financial terms
- It can therefore be assigned a value for its
net worth or
solvency which is the difference between the two
Examples of accounting entities include corporations, clubs, trusts, partnerships and individuals.
References
Elaiza 2020