The situation of accountants preparing meaningful financial reports for on-going businesses by dividing their lives into reporting intervals of equal length reflects the
A) accounting period concept.
B) historical cost principle.
C) unit of measurement concept.
D) going concern assumption.
E) revenue recognition rules.

Question

Quizplus · Accepted Answer

The accounting period concept is the principle that allows businesses to divide their economic activities into specific time periods for reporting purposes, such as months, quarters, or years. This concept enables the preparation of meaningful and timely financial reports by segmenting the continuous business activities into manageable intervals.

The Situation of Accountants Preparing Meaningful Financial Reports for On-Going