During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?
A)Cost/benefit relationship
B)Periodicity assumption
C)Conservatism constraint
D)Matching principle

Question

Quizplus · Accepted Answer

The periodicity assumption is the basic accounting concept that requires accountants to produce financial statements at arbitrary points in time during the lifetime of an entity. This assumption divides the entire life of a business into smaller periods of time, such as months, quarters, or years, and requires financial statements to be prepared at the end of each period. This allows stakeholders to see how the entity is performing over time and helps them make better-informed decisions.

During the Lifetime of an Entity, Accountants Produce Financial Statements