The time period concept states that ________.
A) financial statements can be prepared for specific periods
B) all expenses should be recorded when they are incurred during the period
C) companies should record revenue when it has been earned
D) expenses incurred during a period should be matched against the revenues of the period

Question

Quizplus · Accepted Answer

The time period concept states that financial statements can be prepared for specific periods, such as monthly, quarterly, or annually. This concept allows companies to track their performance over time and provide useful information to stakeholders. The other choices relate to the matching principle and revenue recognition principle, which are related but separate accounting concepts.

The Time Period Concept States That ________