The periodicity assumption states
A)the business will remain in operation for the foreseeable future.
B)the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared.
C)every economic entity can be separately identified and accounted for.
D)only those things that can be expressed in money are included in the accounting records.

Question

Quizplus · Accepted Answer

The periodicity assumption states that the life of a business can be divided into artificial time periods (such as months, quarters, or years) and that useful reports covering those periods can be prepared. This assumption allows for meaningful comparisons of financial information over time.

The Periodicity Assumption States