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?

AGoing concern

BMonetary unit

CPeriodicity

DEconomic entity

Show Suggested Answer

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

4 days ago

B) Monetary unit

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Elza

20 days ago

A) Going concern

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Felice

2 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

4 days ago

D) Economic entity

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Elenore

6 days ago

C) Periodicity

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Thomasena

20 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

17 days ago

It's definitely a key aspect of financial reporting, ensuring that information is provided at regular intervals.

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Kayleigh

25 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

15 days ago

Annual reports provide a snapshot of the company's performance for that specific year.

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Shawn

25 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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