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:

Autonomy

The capacity to make an informed, uncoerced decision; often emphasizes independence and self-determination.

Shame And Doubt

Feelings typically associated with Erik Erikson’s stages of psychosocial development, characterizing the crisis faced during early childhood.

Evolutionary Theory

A fundamental concept in biology that implies all species are related and gradually change over time through a process of natural selection.

Survival And Reproduction

Fundamental biological processes where an organism maintains its existence and produces offspring.