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:

Ethics

Ethical standards that influence an individual's actions or the management of an activity.

Media Richness

Media richness theory suggests that communication media vary in their ability to convey information effectively, with richer media being more capable of transmitting complex messages.

Facilitate Feedback

The act of making it easier to provide or receive constructive criticism and responses.

Multiple Information Cues

Various signals or pieces of information that can be used to make judgments or decisions.