Question

What is the periodicity assumption?a. None of theseb. Companies should match expenses with revenuesc. Companies should recognize revenue in the accounting period in which the performance obligation is satisfiedd. The economic life of a business can be divided into artificial time periodse. A principle that a company's fiscal year-end should correspond with the calendar year

Answer 1

Answer: The economic life of a business can be divided into artificial time periods.

Explanation: As per the principal of continuity the existence of a company is perpetual thus to report the performance of the company to the stakeholders the existence of such company is divided into smaller periods and this method is termed as periodicity assumption.