The Periodicity Assumption Is the Basis for Which of the Following

question 37

Multiple Choice

The periodicity assumption is the basis for which of the following?

• A) dividing the activities of a business into a series of time periods for accounting and reporting purposes.
• B) the cut-off of revenue recognition only.
• C) keeping the company's transactions separate from the owners' transactions.
• D) the cut-off of expense recognition only.

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Definitions:

Hair Follicle

Invagination of the epidermis into the dermis; contains the root of the hair and receives the ducts of sebaceous and apocrine glands.

Sebaceous Glands

Small oil-producing glands in the skin that secrete sebum into hair follicles to lubricate the skin and hair.

Adipose Tissue

A type of connective tissue that stores energy in the form of fat, provides insulation, and supports and protects organs.

Subcutaneous Layer

The layer of tissue directly under the skin, composed of fat and connective tissues that insulate and protect the body.