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

Question

Quizplus · Accepted Answer

The Periodicity concept in accounting allows entities to divide their economic activities into artificial time periods for the purpose of providing timely information to users. This concept underlies the practice of issuing financial statements at regular intervals (e.g., quarterly, annually).

During the Lifetime of an Entity, Accountants Produce ﬁNancial Statements