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Chrishundra Caldwell
on Nov 14, 2024

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The time period assumption is often referred to as the expense recognition principle.

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred, matching them with the revenues they help to generate.

Time Period Assumption

An accounting principle that allows an organization to divide its economic activities into specific time periods such as months, quarters, or years for reporting purposes.

  • Master the essential concepts of revenue and expense acknowledgment and its effects on financial records.
  • Acknowledge the criticality of the time period assumption in accounting and its impact on financial reporting.
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Samantha CookeNov 14, 2024
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