Which of the Following Best Describes the Time Period Assumption

Going concern and time period d. Revenue should be recognized in the accounting period in which it is earned.

Solved Which Of The Following Best Describes The Time Period Chegg Com

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. This period of time is termed as reporting time period or accounting time period and can be annually weekly monthly semi-annually or any other interval of time. Which of the following terms best describes financial statements whose basis of accounting recognizes transactions and other events when they occur. It is the cutoff point for asset and liability recognition.

The time period assumption states that. Expenses should be matched with revenues. It is the cutoff point for asset and liability recognition.

It assumes we value a business as of the end of every month. Which of the following best describes the time period assumption. Recognizing revenue when performance obligations are satisfied and expenses when incurred best describes the time period assumption expense recognition principle O accrual basis of accounting O operating cash flow cash receipts minus cash payments QUESTION 30 Which of the following statements about a trial balance is correct.

It is the cutoff point for asset and liablity recognition O It assumes we divide the long life of a business into a series of shorter time periods for accounting and reporting purposes O It assumes we value a business as of the end of every month. Accrual basis of accounting b. Which of the following best describes the time period assumption.

It implies that financial statements are prepared at the end of a business entitys operating cycle. Which of the following best describes the time period assumption General. Time period and monetary unit 2.

O It implies that financial. Invoice basis of accounting 3. The economic life of a business can be divided into artificial time periods.

The fiscal year should correspond with the calendar year. It assumes we divide the long life of a business into a series. Accounting questions and answers.

Cash basis of accounting d. TRUE An example of operating revenues would be the revenue created by the sale of an automobile by a car dealership. Going concern basis of accounting c.

The time period assumption is the principle of financial accounting in which it is assumed that all organizations and companies can separate their activities into different time periods. The time period assumption implies that the life of a business entity can be reported in time periods such as quarters and years. Which of the following best describes the time period assumption.

Which of the following best describes the time period assumption.

4 Accounting Assumptions

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