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The Periodicity Concept allows accounting to:
AVary period length by month
BTreat each year as the final year
CDefer all reporting to liquidation
DSplit the infinite life of an organisation into smaller equal-duration periods
Answer & Solution
Correct answer: D. Split the infinite life of an organisation into smaller equal-duration periods
1. Per OCR: "Accounting period concepts assumes that the infinite life of an organisation can be split into smaller periods of equal duration."
2. Quarter, half-year, year — chosen periods.
3. Allows operating results + financial position at intervals.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.1 (page 17)_