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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?

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Suggested Answer: B

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

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Iluminada
1 months ago
Periodicity, the accountant's version of 'rinse and repeat.' It's the metronome that keeps the financial world in sync.
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Kimberlie
1 months ago
Going concern, monetary unit, periodicity... It's like a choose-your-own-adventure, but with more spreadsheets and less adventure.
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Juliana
3 days ago
B) Monetary unit
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Elza
19 days ago
A) Going concern
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Felice
1 months ago
Periodicity, the foundation of financial reporting. It's like clockwork, except with numbers instead of springs and gears.
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Zita
3 days ago
D) Economic entity
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Elenore
5 days ago
C) Periodicity
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Thomasena
19 days ago
B) Monetary unit
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Brynn
1 months ago
A) Going concern
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Erick
2 months ago
Annual reports, the bane of every accountant's existence. But hey, at least we get to play with the 'Periodicity' assumption, right?
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Veronique
16 days ago
It's definitely a key aspect of financial reporting, ensuring that information is provided at regular intervals.
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Kayleigh
24 days ago
I agree, it allows us to track performance and make comparisons over specific time periods.
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Hershel
1 months ago
Yes, the 'Periodicity' assumption helps us break down the company's activities into manageable chunks.
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Ocie
2 months 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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Ryan
14 days ago
Annual reports provide a snapshot of the company's performance for that specific year.
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Shawn
24 days ago
Definitely, it helps in comparing financial information over different periods.
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Allene
1 months ago
It's important to have a consistent time frame for reporting purposes.
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Nickie
1 months ago
I agree, C) Periodicity is the basic assumption of accounting that represents dividing economic activities into 12-month periods.
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Billy
2 months 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
2 months 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
2 months ago
I think the answer is C) Periodicity.
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