A company reports financial results each year with the issuance of its income statement and balance sheet. Which underlying assumption is illustrated by this example?
A) economic entity concept
B) going concern concept
C) monetary unit assumption
D) periodicity assumption

Question

Quizplus · Accepted Answer

The periodicity assumption is illustrated here as it allows the company to divide its financial activities into distinct time periods, such as years, for reporting purposes.

A Company Reports Financial Results Each Year with the Issuance