Which of the Following Best Describes the Time Period Assumption

Multiple Choice

Which of the following best describes the time period assumption?

A) It assumes we value a business as of the end of every month.
B) It is the cutoff point for asset and liability recognition.
C) It implies that financial statements are prepared at the end of a business entity's operating cycle.
D) It assumes we divide the long life of a business into a series of shorter time periods for accounting and reporting purposes.