Worldatwork Exam T7 Topic 2 Question 100 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 100
Topic #: 2

[All T7 Questions]

The economic activities of US-based Company XYZ is divided into 12-month periods for the purpose of issuing annual reports. Which basic assumption of accounting does this practice represent?

AGoing concern

BMonetary unit

CPeriodicity

DEconomic entity

Show Suggested Answer

Suggested Answer: B

by Hyman at Sep 16, 2024, 07:08 PM

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Ocie

1 days ago

Ah, the classic 12-month period for annual reports. Looks like C) Periodicity is the way to go. Time flies when you're having fun with accounting!

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Billy

11 days ago

I'm not sure. Could it also be D) Economic entity because they are treating the company as a separate entity from its owners?

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Mose

12 days ago

I agree with Ariel. The economic activities being divided into 12-month periods shows that they are following the periodicity assumption.

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Ariel

13 days ago

I think the answer is C) Periodicity.

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