The accounting period concept states that:Group of answer choicesthe business will remain in operation for the foreseeable future.only those events that can be expressed in money may be included in the accounting records.the life of a business can be divided into artificial time periods.every business entity can be separately identified and accounted for.

The accounting period assumption means that:Group of answer choicesthe cash approach is always used to measure profits.the activities of the owner are assumed to be separate from those of the business.the accrual approach is always used to measure profits.for reporting purposes the economic life of an entity is divided into arbitrary time periods.

Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements? A. Fiscal year B. Calendar year C. Accounting period D. Accrual period

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Accrual basis accounting:Multiple ChoiceIncreases the comparability of financial statements from period to period.Is flawed because it gives complete information about cash flows.Recognizes revenues when received in cash.Recognizes expenses when paid in cash.Eliminates the need for adjusting entries at the end of each period.

Meaning of Accounting