The periodicity assumption states that:
A)a transaction can only affect one period of time.
B)estimates should not be made if a transaction affects more than one time period.
C)adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations.
D)the economic life of a business can be divided into artificial time periods.

Question

Quizplus · Accepted Answer

The periodicity assumption allows businesses to divide their economic activities into artificial time periods, such as months, quarters, or years, for reporting purposes.

The Periodicity Assumption States That