ENTITY ASSUMPTION Definition

Bookmark and Share

ENTITY ASSUMPTION is the assumption that financial statements are prepared for an entity that is separate and distinct from its owners.

Learn new Accounting Terms

MID-CAP is a stock with a capitalization, total equity value, between $500 million and $5 billion.

NET RECEIVABLES are a companys accounts receivable (money owed to the company) minus any provisions for bad debts. A firm with a sustainable competitive advantage shows a lower percentage net receivables to gross sales than their competitors, i.e. a firm with a sustainable competitive advantage need not be generous with credit.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.