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Surname 1NameTutorCourseDatePeriodicity assumptionPeriodicity assumption also called the period assumption, is used to refer to the idea thatbusinesses can subdivide their different activities into various time periods. There are differentusers of financial statements of a business, and all of them need to acquire timely financialinformation. The period assumption comes in handy at this time because it enables thebusinessmen to prepare the different financial statements on a monthly, quarterly or yearly basis.The going concern of a business states that a company should be treated as if it will continuefor a long period of time. However, it is also essential to evaluate the performance of a businessfor shorter time frames.The period assumption is fundamental in financial accounting since it enables a business toprovide information about current performance to the creditors ...


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