The We Build Anything Construction Company recently completed the construction of an office building that took 14 months to complete.Following the completion of this project the company began construction of a shopping center that took 15 months to complete.The company's financial statements were not prepared at the end of each of these projects but at the end of the fiscal year.This best describes an application of the:

Question

Quizplus · Accepted Answer

The periodicity concept requires that financial statements be prepared at regular intervals (such as the end of the fiscal year) to provide timely and useful information for decision-making. This concept was applied in this scenario as the financial statements were not prepared at the end of each project, but at the end of the fiscal year. The business entity concept relates to the separation of personal and business finances, the monetary unit concept focuses on the measurement and reporting of financial transactions in a common currency, and the going concern concept assumes that the company will continue to operate in the foreseeable future. These concepts are not really relevant for this scenario.

The We Build Anything Construction Company Recently Completed the Construction