Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods. To explain: Effect of time period assumption on business analysis.

Question

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Answer 1

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

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Answer 2

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

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Answer 3

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

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Answer 4

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

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Answer 5

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Answer 6

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

Answer 7

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

Answer 8

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Answer 13

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

Answer 14

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.