For accounting purposes the life of an entity is divided into arbitrary time intervals of equal length,which are called:

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The term "accounting periods" refers to the arbitrary time intervals of equal length that are used for accounting purposes to measure and report financial performance. These periods can be monthly, quarterly, or annually, depending on the needs and preferences of the entity. The choice of accounting periods can impact the accuracy and comparability of financial statements, as well as the timing of revenue recognition and expense accrual.

For Accounting Purposes the Life of an Entity Is Divided