The time period assumption assumes that an organization's activities can be divided into specific time periods including all of the following except:
C) Fiscal years.
D) Calendar years.
It is acceptable to record cash received in advance of providing products or services to revenue accounts.
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) Matching principle.
E) Accrual basis of accounting.
Interim financial statements refer to financial reports:
A) That cover less than one year, usually spanning one, three, or six-month periods.
B) That are prepared before any adjustments have been recorded.
C) That show the assets above the liabilities and the liabilities above the equity.
D) Where revenues are reported on the income statement when cash is received and expenses are reported when cash is paid.
E) Where the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues.