The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is:
A) time period
B) business entity
C) historical cost
D) transaction
E) none of the answers are correct

Question

Quizplus · Accepted Answer

The time period assumption allows businesses to divide their operations into distinct and shorter periods, such as months or years, to prepare financial statements and assess performance.

The Assumption That Enables Us to Prepare Periodic Statements Between