Accountants divide the life of the business into arbitrary time periods of equal length:
A. in order to prepare a balance sheet.
B. in order to calculate comparable profit results.
C. in order to prepare an income statement.
D. because of the accounting entity assumption.
Answer:B
Accountants divide the life of the business into arbitrary time periods of equal length:
A. in order to prepare a balance sheet. B. in order to calculate comparable profit results. C. in order to prepare an income statement. D. because of the accounting entity assumption.