The Time Period Assumption

question 199

Multiple Choice

The time period assumption:

• A) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
• B) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
• C) Means that we can express transactions and events in monetary, or money, units.
• D) Means that a business is accounted for separately from other business entities, including its owner.
• E) Prescribes that a company record the expenses it incurred to generate the revenue reported.

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Definitions:

Sociology

The study of societal structures, relationships, and processes that influence human behavior and interactions.

Time

In economics, time is considered a valuable resource, affecting labor, production, and opportunity costs.

Boring Business

A term humorously used to describe industries or enterprises that are perceived as lacking excitement or innovation.

M.B.A.s

Master of Business Administration degrees, advanced educational qualifications aimed at providing individuals with knowledge about various aspects of business management.