Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 14)
What is the time period assumption?
It means that business transactions should be recorded within the same accounting period.
It means that a business's lifetime should be divided into successive accounting periods.
It's the same as the going concern principle.
It ensures comparability of the financial statements.
Explanation
The time period assumption divides a business's life into regular intervals for financial reporting.
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