A business will divide the life of its business into specific accounting periods because
A) a transaction can only affect one period of time.
B) the number of transactions will be more evenly divided between periods.
C) adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations.
D) It will provide useful information to the business's users.

Question

Quizplus · Accepted Answer

Dividing the life of a business into specific accounting periods allows for the regular reporting of financial information, making it more useful and timely for decision-making by users such as investors, creditors, and management. This periodic reporting helps in assessing the performance and financial position of the business over time.

A Business Will Divide the Life of Its Business into Specific