The periodicity assumption requires that present value calculations take into account the number of compounding periods in each year.

Name: The periodicity assumption requires that present value calculations take into account the number of compounding periods in each year.
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The periodicity assumption refers to the division of an entity's life into discrete time periods for reporting purposes, not to the specifics of present value calculations or compounding periods.

The Periodicity Assumption Requires That Present Value Calculations Take into Account