An Abrupt and Sustained Change of Control Values in One

question 1

Multiple Choice

An abrupt and sustained change of control values in one direction is known as a ______, and a gradual change of control values in one direction is known as a ______.

• A)random error, trend
• B)trend, shift
• C)shift, trend
• D)shift, random error

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Definitions:

Interim Periods

Interim Periods are shorter time frames within a fiscal year, during which a company reports its financial performance, often quarterly or semi-annually.

Prepaid Expense

Expenses paid in advance and recorded as assets until they are used or consumed.

Periodicity Assumption

An accounting principle that divides the ongoing activities of a business into set periods of time, such as months or years, to produce financial statements for those periods.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period they actually belong.