Discuss the Importance of Periodic Reporting and the Time Period

question 28

Essay

Discuss the importance of periodic reporting and the time period assumption.

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Definitions:

Contradictory

Describes statements, beliefs, or ideas that are directly opposed to each other and cannot be true at the same time.

Parol Evidence

Evidence outside of a written contract which is not admissible to alter, contradict, or add to the terms of the written agreement.

Final Statement

The last financial document summarizing all account activity and balances at the conclusion of a transaction or accounting period.

Orally Agreed-on Condition

An orally agreed-on condition refers to terms or stipulations in a contract that have been agreed upon verbally and not written down.