7 5. Which one of the following is not an external user of accounting information? b. d. 6. a b. C d. a. Regulatory agencies. Customers Investors All of these are external users. The time period assumption states that a transaction can only affect one period of time. estimates should not be made if a transaction affects more than one time period. adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations. the economic life of a business can be divided into artificial time periods. Which statement is correct? As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use. b. The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles. d. The cash basis of accounting is objective i because no one can be certain of the amount of revenue until the cash is received. As long as management is ethical, there are no problems with using the cash basis of accounting. 8. The time period assumption is also referred to as the calendar assumption b. cyclicity assumption. c periodicity assumption d fiscal assumption 9. Which of the following are in accordance with generally accepted accounting principles? Accrual basis accounting b. Cash basis accounting C d Both accrual basis and cash basis accounting Neither accrual basis nor cash basis accounting 10 The revenue recognition principle dictates that revenue should be recognized in the accounting records D 15 when cash is received when it is samed at the end of the month in the period that income taxes are paid The expense recognition precipe matches cualq