Which accounting assumption assumes that all accounting information is reported monthly or yearly?
A)Business entity assumption
B)Monetary unit assumption
C)Value assumption
D)Cost assumption
E)Time period assumption

Question

Quizplus · Accepted Answer

The time period assumption assumes that all accounting information is reported over a specific period of time, which is usually monthly or yearly. This helps to provide a clear picture of the financial position and performance of the business during a particular period. The other choices (A) Business entity assumption, (B) Monetary unit assumption, (C) Value assumption, and (D) Cost assumption do not relate to the reporting frequency of accounting information.

Which Accounting Assumption Assumes That All Accounting Information Is Reported