Users Require a Variety of Information About the Financial Position

question 88

Essay

Users require a variety of information about the financial position and performance of a firm in order to make decisions.Users cannot wait until the life of the business is completed.Accordingly,the accounting period assumption requires that financial reports depicting changes in wealth of an enterprise be prepared periodically.
Required:
Explain the relationship between the accounting period assumption and accrual basis accounting.

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Definitions:

Emotional

Relating to one's feelings or emotions, often implicating the capacity to experience and respond to feelings both internally and in interaction with others.

Moral Dilemmas

Situations in which a difficult choice has to be made between two or more actions, each of which has morally significant consequences.

Civilize

The process or act of bringing a society to a stage of social, cultural, and moral development considered to be more advanced, often viewed critically as implying supremacy over other cultures.

Americanized

The process through which non-American cultures, practices, or individuals become assimilated or adapted to American customs and values.