Bright Electronics divides their economic activities into time-frames of three months and prepares their financial statements for interested parties at the end of each time-frame. The accounting assumption being applied by Bright Electronics is:
A) Accounting entity
B) Going concern
C) Reliability
D) Accounting period

Question

Quizplus · Accepted Answer

The accounting assumption being applied by Bright Electronics is the accounting period assumption, which divides the economic life of an enterprise into equal periods of time for financial reporting purposes. In this case, the Bright Electronics divides their economic activities into time-frames of three months and prepares their financial statements at the end of each time-frame.

Bright Electronics Divides Their Economic Activities into Time-Frames of Three