Which of the following assumes that the financial statements of a business can be prepared for specific periods?
A) matching principle
B) revenue recognition principle
C) time period concept
D) adjusting entry principle

Question

Quizplus · Accepted Answer

The time period concept assumes that the financial statements of a business can be prepared for specific periods, such as monthly, quarterly, or annually. This helps in comparing the performance of a business over different periods and making informed decisions. The other principles - matching principle, revenue recognition principle, and adjusting entry principle - are accounting concepts that guide the recognition and measurement of revenues and expenses in financial statements.

Which of the Following Assumes That the Financial Statements of a Business