The Time Period Assumption States That

question 152

Multiple Choice

The time period assumption states that

• A) a transaction can only affect one period of time.
• B) estimates should not be made if a transaction affects more than one time period.
• C) adjustments to the company's accounts can only be made in the time period when the business terminates its operations.
• D) the economic life of a business can be divided into artificial time periods.

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Definitions:

Organizations

Structured groups of people working together to achieve common goals.

Charismatic Leadership

A leadership style characterized by leaders who inspire and motivate followers through their charismatic attributes and vision.

Work Existence

refers to the aspect of having employment and its significance in an individual's life, often implying the balance between work and other life facets.

Group Will

A collective inclination or determination of a group towards achieving a particular goal or outcome.