Periodicity
Assumption: Transactions are recorded in the books of
accounts on the assumptions that profits are to be ascertained for a specified
period. This is known as Periodicity Assumption of Accounting.
Economic entity
assumption: In accounting, an economic
entity is one of the assumptions made in generally accepted accounting
principles. Basically, any organization or unit in society can be an economic
entity.
Examples of economic entities are hospitals, companies, municipalities
and federal agencies.
The "Economic Entity Assumption" says
that the activities of the entity are to be kept separate from the activities
of its owner and all other economic entities