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    Question

    The 'Accounting Period Concept' states that the life of

    a business is divided into:
    A Unequal periods for reporting. Correct Answer Incorrect Answer
    B Artificial time intervals for measuring performance. Correct Answer Incorrect Answer
    C Periods based on cash flow cycles. Correct Answer Incorrect Answer
    D A single, continuous period. Correct Answer Incorrect Answer

    Solution

    The Accounting Period Concept (or Periodicity Concept) assumes that the indefinite life of a business is divided into shorter, regular, and artificial periods (like quarters or years) to allow for the timely preparation and reporting of financial statements.

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