Many business transactions affect more than one time period.

Name: Many business transactions affect more than one time period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Business transactions such as investments, loans, and prepaid expenses can affect multiple time periods. For example, when a company makes an investment or takes out a loan, the effects can be felt over several years as the asset or liability is gradually paid off or earns interest. Similarly, prepaid expenses are typically amortized over the period that they cover.

Many Business Transactions Affect More Than One Time Period