Which accounting concept requires that the life of the business be divided into smaller intervals for performance measurement? MCQ with Answer and Explanation
Which accounting concept requires that the life of the business be divided into smaller intervals for performance measurement?
A. Matching Concept
B. Materiality Concept
C. Going Concern Concept
D. Accounting Period Concept
Answer: Option D
Solution (By JKSSB Mock Tests)
The Accounting Period Concept artificially breaks the continuous life of a business into standard intervals (usually 12 months) for reporting purposes.
Explanation:
Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.
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