A Broad Principle That Requires Identifying the Activities of a Business

question 154

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) Matching principle.
• E) Accrual basis of accounting.

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Definitions:

Depletion

The reduction in the value of natural resources, such as minerals, oil, and gas, as they are extracted and utilized.

Calculation

The process of determining a numerical result or value, often involving mathematical operations.

Goodwill

An intangible asset representing the excess value paid for a company over its net assets at the time of acquisition.

Patent

A legal document granted by the government providing an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.