The concept that assists accountants in determining how often to prepare financial reports is the:
A)Cost principle.
B)Time-period assumption.
C)Recognition criteria for revenue.
D)Matching objective.

Question

Quizplus · Accepted Answer

The time-period assumption is the accounting principle that allows an organization to divide its economic activities into time periods for reporting purposes. This concept facilitates the preparation of financial reports on a regular, periodic basis (e.g., monthly, quarterly, annually), making it easier for stakeholders to analyze performance and make decisions.

The Concept That Assists Accountants in Determining How Often to Prepare