Long-lived tangible assets like equipment are reported in the balance sheet and depreciated annually because of.....

Long-lived tangible assets like equipment are reported in the balance sheet and depreciated annually because of..

Select one:

a. Periodicity assumption

b. Full disclosure principle

c. Economic entity assumption

d. Going-concern assumption

Solutions

Expert Solution

Answer is as follows:

a. Periodicity assumption

Periodicity assumption assumes that comapny's ongoing activities can be divided into measurement intervals and reported in annual, quarterly and monthly financial statements.

Based on this assumption long lived tangible assets like equipment are depreciated annually and reported in the balance sheet.

ekkarill92 answered 2 years ago

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