Question

Answer the following questions in one word or one sentence.
9. Why the entire life of a business is divided into time intervals? (1)

Answer 1

Answer:

The time period assumption is also known as accounting time period concept, it says that life of a business can be divided into different time intervals mainly quarter, 6 months or a year. It helps the organization to analyze the things which it has done in the past and take actions according to that in future.