Question

Although income is earned continuously, companies measure income for a specific period of time. Accountants refer to this practice as:________a) unit of measure assumption.b) time period assumption.c) matching principle.d) continuity assumption.

Answer 1

Answer: Time period assumption.

Explanation:

The time period assumption is an accounting standard that enables businesses to record their financial activities for a given time frame ( it could be a measure of either yearly, half yearly, monthly, weekly or daily financial activities).