Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods. To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

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Answer 1

Question

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

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03:39

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Answer 2

Question

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

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03:39

Answer 3

Question

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

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03:39

Answer 4

Question

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

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Answer 5

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

Answer 6

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods

Answer 7

Chapter 3, Problem 1Q

To determine

Time Period Assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To Explain: (a) Effect of time period assumption on business analysis, and (b) fiscal year, calendar year, and interim periods

Answer 8

Expert Solution & Answer

Explanation of Solution

(a)

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

Explanation of the following terms:

Fiscal Year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.
Calendar Year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.
Interim Periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods