A. Companies should recognize revenue in the accounting period in which it is earned. B. Companies should match expenses 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.The economic life...
Time period assumption permits the accountant to measure the performance of businesses and other economic entities. If time is not divided into distinct periods, the accountant cannot record separate transactions in separate time periods. If transactions are not recorded in separate time periods, the a...
The economic life of a business can be divided into artificial time periods.
1. What is the time period assumption? A) Companies should recognize revenue in the accounting period in which it is earned. B) Companies should match expenses with revenues. C) The economic life of a business can be divided into artificial time periods. D) The fiscal year should correspond...
What is time period assumption? The time period principle (or time period assumption) is an accounting principle which states that a business should report their financial statements appropriate to a specific time period. ... These periods can be quarterly, half yearly, annually, or any other in...
A key concept in accrual accounting is the Periodicity Assumption, also known as the Time Period Assumption. Financial reporting is simplified when...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can ans...
The time period principle (or time period assumption) is an accounting principle which states that a business should report their financial statements appropriate to a specific time period. Stay on top of your financial activity by using an online invoicing software such as Debitoor. Sign up now...
To be arrogant or pretentious; to claim more than is due. Assumption The act of taking for granted, or supposing a thing without proof; supposition; unwarrantable claim. This gives no sanction to the unwarrantable assumption that the soul sleeps from the period of death to the resurrection ...
Time Period Assumption Monetary Unit Assumption Cost Principle (or Measurement Principle) Matching Principle (or Expense Recognition Principle) Revenue Recognition Principle Full Disclosure Principle Industry Practices In addition to the basic underlying accounting principles, there are various characteristics that...
Time period assumption Monetary unit assumption Cost principle or measurement principle Matching principle or expense recognition principle Revenue recognition principle Full disclosure principle Industry practices Related to these underlying accounting principles are the following: objectivity, conservatism, materiali...