Why Is the Time Period Assumption Required

question 156

Multiple Choice

Why is the time period assumption required?

• A)Inflation exists.
• B)External users of financial statements want statements that accurately reflect net income or earnings for a specific time period.
• C)The dollar is the monetary unit in the United States.
• D)The federal government requires it.

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Definitions:

Public Opinion

The collective attitudes or beliefs of the adult population on various issues, influenced by cultural, societal, and personal factors.

Constitutional Convention

A formal gathering for the purpose of creating or amending a constitution.

Delegates

Individuals chosen to represent others, typically in a conference or a convention; in politics, they often have the authority to vote on behalf of the group they represent.

Upper Class

A social group at the top of a societal hierarchy, often possessing significant wealth, power, and influence.