Hello, in this presentation, we will take a look at some multiple choice questions. First question. The time period assumption assumes that a business reporting can be divided into reporting time periods, including the following, except we have a days be fiscal years, C quarters, D calendar years, he months. If we think about the time period assumption, we're thinking that we are breaking up our data into consistent chunks, the data being something that's going to be continuous, really the accounting process being continuous, but we take a look, we typically break that up. And that's going to be the assumption that we make. When we break them up.

We will usually think that we're going to break that time periods up into years. Sounds relevant quarters, that sounds something that we often do. calendar years that's generally done and months often done. days, although possible, is probably the least effective here. So you might look at this data and say, Hey, I could make a report for a day or something like that or a few days, but it's not the norm that we would have. So if we're looking at all these answers, we'd probably want to eliminate everything from B to E and make the conclusion that a looks like the proper choice.

Next question. The 12 month period that ends when a company's sales activity are at their lowest level is a natural year, B calendar year, see fiscal year, the accounting period and he interim assumption. So if we think about this, we're looking for that 12 month time period that ends when a company's sales activities are at their lowest. So we're usually the 12 months we're going to think that looks like some type of year. So if we think about that, we might be able to eliminate the interim assumption doesn't look like it probably applies. This is the approach we probably go through through to see what's going on here.

Accounting period, if I was going to look at these would probably be something that I would say who doesn't doesn't look like it's something that might apply here. We have the fiscal year, the calendar year and then natural year, it looks like it's between these three to me, so I would probably eliminate those last two, the calendar year obviously is a 12 month period, but it would be defined as the calendar year and the fiscal year is going to be something other posit work could be the same or something other than the calendar. But between A and C. A looks like the best choice here because the natural year is the timeframe where it ends at the lowest level. So that would be something like if we take about a retailer or something like that we know that they have certain points of time in their business cycle, which are heavier than others and they may want to align They're their business so that they have a natural view that ends at the lowest level.

And and that might they might make that also their fiscal year, but they make it their fiscal year because it was a natural year. Next question. The length of time covered by a set of periodic financial statements is called a fiscal cycle, be natural business year, see operating cycle, the business cycle II accounting period. So once again, we're looking for the length of time covered by a set of periodic financial statements. So if we go through this, we could think through this, we're going to say the fiscal year, it doesn't really stay a year here. So we're going to say I'm going to say it's probably maybe it's not specifically a year, say that doesn't look like the one natural business year.

Again, it says a length of time so the fact that it's not naming a year, is making me think well maybe these year that women are saying Maybe that's not the one operating cycle, a business cycle and and accounting period. So, those are the three that we have left. Once again the question the length of time covered by a set of periodic financial statements is called. Well the operate the accounting period is typically going to be the account length of time covered. The operating cycle will give us basically our cycle of operations. And the business cycle is going to is going to describe, you know our business rotations, but the best answer here would be accounting period as the length of time covered by a set of periodic financial statements.