During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with the
A) full disclosure principle.
B) periodicity assumption.
C) going concern assumption.
D) economic entity assumption.

Question

Quizplus · Accepted Answer

The periodicity assumption states that the life of an entity can be divided into artificial time periods (usually a year) and financial statements can be produced at the end of each period. Therefore, accountants produce financial statements at arbitrary points in time in accordance with the periodicity assumption.

During the Lifetime of an Entity, Accountants Produce Financial Statements