Question

Choose from the following list of terms/phrases to best complete the statements below.

a. Fiscal year d. Accounting period g. Natural business year

b. Timeliness e. Annual financial statements h. Time period assumption

c. Calendar year f. Interim financial statements i. Quarterly statements

1. presumes that an organization’s activities can be divided into specific time periods.

2. Financial reports covering a one-year period are known as .

3. A(n) consists of any 12 consecutive months.

4. A(n) consists of 12 consecutive months ending on December 31.

5. The value of information is often linked to its .

Short answer

Time periods assumption is the correct option.

Step-by-step solution

Definition of organization’s activities

An organization’s activities mean those activities that the organization performs.

Specific time period

The assumption that assumes specific time periods' activities is known as the time period assumption. Under this, all activities are divided based on their time periods. Time periods assumption is the used to divide the life of company in different time periods. This help in the prepration of financial reports preodically.