Question

By completing the closing process the business is following the time period concept by slicing its activities into small time segments and preparing financial statements for only those specific periods.

A. True
B. False

Answer 1

The statement is True. By completing the closing process, a business follows the time period concept by preparing financial statements for specific time segments. Option A

Step-by-step explanation:

By completing the closing process, a business is indeed following the time period concept. This concept involves dividing the business's activities into specific time segments, such as months or years, and preparing financial statements for those periods. It allows the business to track its performance and financial position over time.

For example, at the end of each month, a business may close its books and prepare financial statements, including an income statement and a balance sheet, for that specific month. This provides an accurate snapshot of the business's financial performance and position for that period. Option A