Which one of the following states that the life of a business can be divided into equal time periods...........

General Accounting Principles Concepts of Accounting

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Which one of the following states that the life of a business can be divided into equal time periods?

Accounting period assumption

Revenue recognition principle

Economic entity concept

Accrual concept

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Explanation:

Accounting period assumption
An accounting period is the time frame for which a business prepares its financial statements and reports its financial performance and position to external stakeholders. This could be after three, six or twelve months. The accounting period usually coincides with the business' fiscal year.