The Periodicity Assumption States That

question 66

Multiple Choice

The periodicity assumption states that

• A)the business will remain in operation for the foreseeable future.
• B)the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared.
• C)every economic entity can be separately identified and accounted for.
• D)only those things that can be expressed in money are included in the accounting records.

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Definitions:

Employee Handbook

A document provided by an employer to its employees which outlines the company's policies, procedures, and expectations.

Implied-Contract Exception

An exception to the employment at-will doctrine which provides that an implied employment contract may arise from statements the employer makes in an employment handbook or materials advertising the position.

Wrongful Discharge

The unjust termination of an employee's contract of employment in violation of legal or contractual terms.

Progressive Discipline Policy

A system of discipline where the penalties increase upon repeat occurrences of misconduct.