Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 68: 13a

Answer

In accounting, it is commonly agreed that any proportions of the achievement of an enterprise for periods less than its total life are at best provisional in nature and subject to amendment.

Work Step by Step

Measurement of status and progress for arbitrary time spans is a practical necessity to serve the individuals who must decide. It isn't the result of postulating specific time frames as measurable segments of total life.
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