Why Is the Time Period Assumption Required

question 156

Multiple Choice

Why is the time period assumption required?

• A)Inflation exists.
• B)External users of financial statements want statements that accurately reflect net income or earnings for a specific time period.
• C)The dollar is the monetary unit in the United States.
• D)The federal government requires it.

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Definitions:

Management By Exception

A management strategy where only significant deviations from set standards, goals, or performances are brought to attention, allowing for focus on exceptional cases.

Laissez Faire Leadership

A leadership style in which the leader takes a hands-off approach, allowing members of the group to make their own decisions.

Intuitive Appeal

The natural attractiveness or persuasiveness of an idea or concept that feels right or acceptable without extensive rationale or logic.

Laissez Faire Leadership

A leadership style where leaders take a hands-off approach, allowing team members to make decisions and solve problems independently.