Q.3-3RQ
Question
Which accounting concept or principle requires companies to divide their activities into small time segments such as months, quarters, or years?
Step-by-Step Solution
Verified Answer
Time period concept.
1Accounting Principles
Accounting principles are the set of rules or guidelines, that are followed while preparing the financial statements.
2Explanation on Time Period Concept
As per the time period concept, it is assumed that activities of the business can be divided into small time segments. These small-time segments such as quarter, month or year, used to prepare financial statements.
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