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Question

During the life-time of an entity, accountants prepare financial statements at a point of time in accordance with which basic accounting principles?
  1. Matching
  2. Periodicity
  3. Conservatism
  4. Cost-benefit
  5. All of these

A
Cost-benefit
B
Periodicity
C
Conservatism
D
Matching
E
All of these
Solution
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The correct answer is periodicity. Periodicity means that accountants will assume that a company's ongoing activities can be presented(or reported)annually, monthly or quarterly.

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