AICPA Adapted The concept of the accounting entity often is considered to be the most fundamental of accounting concepts, one that pervades all of accounting. Required 1. a. What is an accounting entity? Explain. b. Explain why the accounting entity concept is so fun- damental that it pervades all of accounting. 2. For each of the following indicate whether the account- ing concept of entity is applicable; discuss and give illustrations. a. A unit created by or under law b. The product-line operating segment of an enterprise c. A combination of legal units and/or product-line oper- ating segments d. All of the activities of an owner or a group of owners e. An industry f. The economy of the United States
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