The time period concept assumes that the activities of a business can be sliced into small time segments and that financial statements can be prepared for specific periods of time.

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The time period concept is a basic accounting principle that assumes that a business's activities can be divided into specific time periods, usually a month, quarter, or year. This allows financial statements to be prepared to show the results of operations and financial position for each period.

The Time Period Concept Assumes That the Activities of a Business