The Time Period Assumption

Multiple Choice

The time period assumption:

A) 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.
B) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
C) Means that we can express transactions and events in monetary, or money, units.
D) Means that a business is accounted for separately from other business entities, including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.