It or That?

I think "it" is better, but both are possible with pretty much the same meaning.

Grammar books do say that when you refer back to an entire paragraph or a sentence you should use this/that and not it.

It is used when referring back to a single thing/person etc. (i.e. a word or a phrase previously mentioned).

I think the confusion arises from the fact that the construction it + verb is so common in English that we can't see anything wrong wi

Thank you, both. This American says, “Having a dog is a good thing. It means you will never be lonely.” is correct because you are talking about a general situation. He says, “ She bought ...” is about a specific situation, in which case “That” should be used. I would like have your comments.

Peemanhm One American says, “She bought me a dog! It means I ‘ll never be lonely anymore.” is wrong. He says “That” and not “It” should be used. Is “It” wrong?

Yes, it's wrong because there isn't anything in the preceding sentence that "it" can be. It's not "she" that means something. It's not "a dog" that means anything.

What's intended is to say t