ACCOUNTING ENTITY ASSUMPTION Definition

ACCOUNTING ENTITY ASSUMPTION states that a business is a separate legal entity from the owner. In the accounts the business' monetary transactions are recorded only.

Learn new Accounting Terms

BILL OF SALE is a written statement attesting to the transfer (sale) of goods, possessions, or a business to a buyer.

UNIT-OF-WORK-PERFORMED METHOD is where revenue and cost of sales are recorded as units of work are delivered. This is most suitable to production-type contracts where many units of a product are produced in a continuous process, e.g. automobile manufacture.

Suggest a Term