The time-period assumption is necessary because
A)inflation exists and causes confusing swings in financial statement amounts over time.
B)external users of financial statements want accurately-reported net income for a specific period of time.
C)financial statements users expect full disclosure of all economic events throughout the entire time period.
D)it is required by the federal government.

Question

Quizplus · Accepted Answer

The time-period assumption is necessary because external users of financial statements want accurately-reported net income for a specific period of time. This assumption helps in presenting a clear picture of the financial status of the business for a particular period.

The Time-Period Assumption Is Necessary Because