A Broad Principle That Requires Identifying the Activities of a Business

question 212

Multiple Choice

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

• A)Operating cycle of a business.
• B)Time period assumption.
• C)Going-concern assumption.
• D)Expense recognition (matching)principle.
• E)Accrual basis of accounting.

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Definitions:

Stock Investments

Financial assets representing shares of ownership in a company, acquired for income or capital appreciation.

Profit Margin

A financial metric used to evaluate a company's profitability by comparing net income to revenue, often expressed as a percentage.

Total Asset Turnover

Total Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how effectively a company uses its assets to generate earnings.