A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:
A)Operating cycle of a business.
B)Time period assumption.
C)Going-concern assumption.
D)Expense recognition (matching)principle.
E)Accrual basis of accounting.

Question

Quizplus · Accepted Answer

The time period assumption is the principle that requires businesses to identify their activities with specific time periods, such as months, quarters, or years. This allows for accurate record-keeping and comparison of financial information over time. The other options listed are all accounting principles or assumptions, but they do not specifically relate to the identification of activities with time periods.

A Broad Principle That Requires Identifying the Activities of a Business