As Fiscal Periods Become Shorter, the Application of Certain Accounting

question 103

Multiple Choice

As fiscal periods become shorter, the application of certain accounting methods become:

• A)more arbitrary and subjective.
• B)more objective.
• C)more accurate.
• D)more conservative.

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Definitions:

Single-use Plan

A strategy designed to address a specific, one-time issue or problem, not intended for repeated use.

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for financial management and goal setting.

Allocation

The distribution of resources or tasks among individuals, groups, or organizations based on a plan or a set of priorities.

Forecasting

The process of making predictions about the future based on past and present data, often used in planning and decision making.