For Which of the Following Reasons Is the Time-Period Assumption

question 129

Multiple Choice

For which of the following reasons is the time-period assumption necessary?

• A) Inflation exists and causes confusing swings in financial statement amounts over time.
• B) External users of financial statements want accurately reported net income for a specific fiscal year.
• C) Financial statement users expect full disclosure of all economic events throughout the entire time period.
• D) It is required by the federal government.

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Definitions:

Experiential Learning Program

A learning approach based on the principle that individuals learn more effectively through direct experience and reflection on that experience.

Interpersonal Conflict

A situation where individuals or groups experience disagreement or discord due to divergent interests, beliefs, or values.

Weekly Sales Meetings

Regular meetings held by sales teams to review performance, strategize, and discuss upcoming sales initiatives and targets.

Role Conflict

Occurs when there are incompatible demands placed upon a person relating to their job or position, causing stress or confusion.