Lazy Company is currently in its third year of operation and has yet to issue financial statements. Which accounting concept or principle has been violated by the company?
A) cost principle
B) going concern principle
C) accounting entity concept
D) accounting period concept

Question

Quizplus · Accepted Answer

The accounting period concept states that the life of an entity can be divided into artificial periods and financial reports covering those periods can be prepared for the entity. Lazy Company is in breach of the accounting period concept by failing to prepare financial statements for the periods that have passed.

Lazy Company Is Currently in Its Third Year of Operation