The assumption that the financial statements of a business can be prepared for specific periods is made by the:
A)matching principle.
B)revenue recognition principle.
C)time period concept.
D)adjusting entry principle.

Question

Quizplus · Accepted Answer

The time period concept assumes that the activities of a business can be divided into specific time periods, such as a month, quarter, or year. This allows for the preparation of financial statements for those specific periods. The matching principle and revenue recognition principle are both accounting principles that guide how revenues and expenses should be recorded, while the adjusting entry principle refers to the process of making adjustments to the accounts at the end of an accounting period.

The Assumption That the Financial Statements of a Business Can