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:

Not Guilty

A legal declaration by the court that a person accused of a crime did not commit it or has been exonerated of the charges.

Error In Trial

A mistake made during a courtroom trial that is significant enough to potentially affect the trial's outcome, warranting a review or appeal.

Civil Law

A legal system based on written codes or statutes, as opposed to common law, which is based on precedent and judicial decisions.

Public Law

A body of law that regulates the relationships between individuals and society, and includes constitutional, administrative, and criminal laws.