Question

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the: A. Operating cycle of a business.B. Time period principle.C. Going-concern principle.D. Matching principle.E. Accrual basis of accounting.

Answer 1

Answer: Time period principle

Explanation: As per the time period principle the financial results and other significant business activities of an entity should be reported over a standard time period which can be monthly, weekly , daily etc.

After selecting the time period frequency, organization have to follow different rules for different statements, as per the US Generally accepted accounting principles.