The periodicity assumption is the basis for which of the following?
A) dividing the activities of a business into a series of time periods for accounting and reporting purposes.
B) the cut-off of revenue recognition only.
C) keeping the company's transactions separate from the owners' transactions.
D) the cut-off of expense recognition only.

Question

Quizplus · Accepted Answer

The periodicity assumption in accounting allows a business to divide its economic activities into time periods (such as months, quarters, or years) for the purpose of reporting its financial results. This assumption facilitates the preparation of financial statements on a regular basis, enabling stakeholders to assess the company's performance and financial position over specific periods.

The Periodicity Assumption Is the Basis for Which of the Following