Ask Question
28 December, 17:48

The time period assumption states that:

a. revenue should be recognized in the accounting period in which it is earned.

b. expenses should be matched with revenues.

c. the economic life of a business can be divided into artificial time periods.

d. the fiscal year should correspond with the calendar year.

+2
Answers (2)
  1. 28 December, 19:43
    0
    The correct answer is c. the economic life of a business can be divided into artificial time periods.

    Explanation:

    The concept states that the life period of an entity can be seperated in to time periods. These periods can be monthly, quarterly, semi annually or annually or a combination of all these periods.

    However, there are legally imposed periods as well (in some countries). There is a law to present the company financials for each year (12 months)
  2. 28 December, 21:04
    0
    c. the economic life of a business can be divided into artificial time periods.

    Explanation:

    According to the time period assumption, the business and all other organizations divide their business activities into various time periods. The time periods can be in terms of monthly, quarterly, half-yearly or on an annual basis. These time periods are also known as recording time periods because in this the transactions are recorded
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The time period assumption states that: a. revenue should be recognized in the accounting period in which it is earned. b. expenses should ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers