Which accounting assumption or principle is being violated if a company provides financial reports only when it introduces a new product?
A) Economic entity.
B) Periodicity.
C) Revenue recognition.
D) Full disclosure.

Question

Quizplus · Accepted Answer

The periodicity assumption requires that financial reports be prepared at regular intervals, such as quarterly or annually, to provide timely and meaningful information to users. Providing financial reports only when introducing a new product violates this assumption as it does not provide regular and consistent information to stakeholders.

Which Accounting Assumption or Principle Is Being Violated If a Company