The Periodicity Assumption States That

question 40

Multiple Choice

The periodicity 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:

External Regulations

Rules, standards, and laws that an organization must follow, which are imposed by external bodies such as governments or industry associations.

Social Wellbeing

The overall health and prosperity of a society, considering factors like quality of life, social cohesion, and access to resources and services.

International Business

Commercial transactions that occur across national borders, including trade, investments, and other forms of economic activity.

AIDS Epidemic

A global public health crisis originating in the late 20th century, caused by the spread of the Human Immunodeficiency Virus (HIV) and leading to Acquired Immunodeficiency Syndrome (AIDS).