Required information The value of information is often linked to its timeliness. To provide timely information, accounting systems prepare periodic reports at regular intervals. The time period assumption presumes that an organization's activities can be divided into specific time periods for periodic reporting. Accrual accounting recognizes revenue when earned and expenses when incurred-not necessarily when cash inflows and outflows occur.

Required information The value of information is often linked to its timeliness. To provide timely information, accounting systems prepare periodic reports at regular intervals. The time period assumption presumes that an organization's activities can be divided into specific time periods for periodic reporting. Accrual accounting recognizes revenue when earned and expenses when incurred-not necessarily when cash inflows and outtlows occur