Business task is liquid. Revenue and price generating activities are in consistent activity. Just because it is time to rotate a web page on a calendar does not expect that all business activity ceases. But, for purposes of measuring performance, it is important to attract a line in the sand of time. A
An accounting assumption that purports to divide a consistent company process right into measurement intervals, such as months, quarters, and years
" data-gt-translate-attributes="<"attribute":"data-cmtooltip", "format":"html">">periodicity assumption is made that company activity can be separated into measurement intervals, such as months, quarters, and years.
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Accounting must divide the constant business process, and also create periodic reports. An yearly reporting duration might follow the calendar year by running from January 1 through December 31. Annual periods are generally better divided right into quarterly durations containing activity for 3 months.
|Define the periodicity presumption, and understand its prestige in earnings measurement.|
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|What is a fiscal year versus a calendar year?|
|Understand the nature and also conceptual importance of the “accrual” basis of bookkeeping.|
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Illustrative EntriesExamples of journal entries for plenty of sample transactions
Account TypesTypical financial statement accounts through debit/crmodify rules and also disclosure conventions