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.

Question

Quizplus · Accepted Answer

The time period assumption requires that a business's activities be divided into specific time periods, usually months, quarters, or years, in order to provide useful information for decision-making purposes.

Note: While the other answer choices are important accounting principles, they do not specifically relate to the requirement of identifying business activities with specific time periods.

A Broad Principle That Requires Identifying the Activities of a Business