A Broad Principle That Requires Identifying the Activities of a Business

question 137

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)Time period assumption.
• C)Going-concern principle.
• D)Matching principle.
• E)Accrual basis of accounting.

---

Definitions:

Form 1040EZ

A simplified tax form for U.S. taxpayers with straightforward tax situations, but it was phased out after the 2017 tax year.

Taxpayer

A taxpayer is an individual or entity that is obligated to pay taxes to a federal, state, or municipal government body, based on earned income, property ownership, or consumption of goods and services.

Interest Income

Income earned from lending funds or depositing funds in interest-bearing accounts, subject to taxation.

Form 1040EZ

A simplified federal income tax form for individuals with uncomplicated tax situations, no longer in use after 2018, replaced by the redesigned Form 1040.