The Time Period Assumption States That

question 56

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 enterprise'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:

Technical Equipment

Tools or devices that are designed with sophisticated technology and engineering for specific tasks, often used in industries like telecommunications, manufacturing, and scientific research.

Vestibule Method

A training technique where employees learn their jobs on the equipment they will be using, but are trained in a separate space (a "vestibule") rather than on the production floor.

Simulation Method

A technique used for experimenting with real-world processes or systems through modeling and scenarios to predict outcomes without direct intervention.

Apprenticeship Method

A training method combining on-the-job training with classroom instruction under the guidance of skilled professionals in the field.