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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.
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