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:

Acidic Soil

Soil with a pH less than 7, often requiring amendment to support a wide range of plant life due to potential nutrient availability issues.

Hydroxyl Ions

Negatively charged particles consisting of one oxygen atom bonded to one hydrogen atom, commonly found in water and many other compounds, playing a crucial role in chemical reactions.

Photochemical Smog

A type of air pollution created when sunlight reacts with pollutants in the atmosphere, often characterized by a brownish haze.

Urban Area

A geographical area characterized by higher population density and vast human features in comparison to areas surrounding it.