A Broad Principle That Requires Identifying the Activities of a Business

question 11

Multiple Choice

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the

• A) Operating cycle of a business
• B) Timeliness principle
• C) Going-concern principle
• D) Matching principle
• E) Accrual basis of accounting

---

Definitions:

Labor

The physical and mental effort used in the production of goods and services.

Slope

In mathematics and economics, it represents the rate at which a variable changes over the change in another variable, often depicted as a line on a graph.

Absolute Value

A mathematical term describing the magnitude of a number regardless of its sign; the distance of a number from zero on the number line.

Indeterminate

A situation or problem that cannot be resolved due to insufficient or conflicting information.