Accountants prepare financial statements at arbitrary points in time during a company's lifetime in accordance with the accounting concept of
A) matching.
B) comparability.
C) accounting periods.
D) materiality.

Question

Quizplus · Accepted Answer

The concept of accounting periods requires accountants to divide a company's lifetime into specific periods of time (e.g. months, quarters, years) in order to prepare financial statements at regular intervals. This allows for easier comparison between periods and analysis of a company's financial performance over time. Matching relates expenses to the revenues earned during the same period, comparability ensures consistency in financial reporting, and materiality refers to the significance of an item in the financial statements.

Accountants Prepare Financial Statements at Arbitrary Points in Time During