Which of the Following Best Describes the Time Period Assumption

question 89

Multiple Choice

Which of the following best describes the time period assumption?

• A)It assumes we value a business as of the end of every month.
• B)It is the cutoff point for asset and liability recognition.
• C)It implies that financial statements are prepared at the end of a business entity's operating cycle.
• D)It assumes we divide the long life of a business into a series of shorter time periods for accounting and reporting purposes.

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