Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Periodicity assumption
A)Implies consensus among different observers.
B)Assumes an entity will continue to operate indefinitely.
C)Ignores the possibility of inflation.
D)Assumes all transactions can be identified with a particular entity.
E)Requires reporting the financial life of an entity in discrete time frames.

Question

Quizplus · Accepted Answer

The periodicity assumption in accounting requires that the financial life of an entity be reported in discrete time frames, such as monthly, quarterly, or annually, to allow for the preparation of financial statements and performance analysis over specific periods.

Listed Below Are Five Terms Followed by a List of Phrases