The time period assumption:

a. Means that we can express transactions and events in monetary, or money, units.

b. Means that a business is accounted for separately from other business entities, including its owners.

c. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.

d. Prescribes that a company record the expenses it incurred to generate the revenue reported.

e. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Question

Thalia Copeland

Business

7 August, 15:07

The time period assumption:

a. Means that we can express transactions and events in monetary, or money, units.

b. Means that a business is accounted for separately from other business entities, including its owners.

c. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.

d. Prescribes that a company record the expenses it incurred to generate the revenue reported.

e. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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Answers (1)

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Imani · Answer 1

The Time period assumption says that the company life must be divided into parts so that after definite internal, reports and informations must be published which are specifically related to the period being divided. This means that the report been published for the year, by doing so the investor can easily understand what is the performance of the company in the year and what is the financial worth or position of the company.