question 2 of 6 a. consistency b. materiality c. full disclosure d. periodicity 1. the life of a business is…

question 2 of 6 a. consistency b. materiality c. full disclosure d. periodicity 1. the life of a business is divided into artificial time periods. 2. this characteristic describes the comparability of financial statements between years. 3. a merger agreed on just after the balance - sheet date nevertheless is reported in the notes to the financial statement. 4. a large company rounds its financial statement figures to the nearest thousand.

question 2 of 6 a. consistency b. materiality c. full disclosure d. periodicity 1. the life of a business is divided into artificial time periods. 2. this characteristic describes the comparability of financial statements between years. 3. a merger agreed on just after the balance - sheet date nevertheless is reported in the notes to the financial statement. 4. a large company rounds its financial statement figures to the nearest thousand.

Answer

Brief Explanations:

  1. Periodicity divides business life into time - periods.
  2. Consistency ensures comparability of financial statements over years.
  3. Full disclosure requires reporting significant events like post - balance sheet mergers in notes.
  4. Materiality allows for rounding of figures when the impact is not significant.

Answer:

  1. d. Periodicity
  2. a. Consistency
  3. c. Full disclosure
  4. b. Materiality