The time period assumption states that:
a. revenue should be recognized in the accounting period in which it is earned.
b. expenses should be matched with revenues.
c. the economic life of a business can be divided into artificial time periods.
d. the fiscal year should correspond with the calendar year.

c. the economic life of a business can be divided into artificial time periods.

Explanation:

According to the time period assumption, the business and all other organizations divide their business activities into various time periods. The time periods can be in terms of monthly, quarterly, half-yearly or on an annual basis. These time periods are also known as recording time periods because in this the transactions are recorded

The correct answer is c. the economic life of a business can be divided into artificial time periods.

Explanation:

The concept states that the life period of an entity can be seperated in to time periods. These periods can be monthly, quarterly, semi annually or annually or a combination of all these periods.

However, there are legally imposed periods as well ( in some countries). There is a law to present the company financials for each year (12 months)

A. 56.32 days

B. 40.38 days

Explanation:

The Operating cycle is the Inventory period + AR period

Inventory period= 365/(Cost of goods sold/Average inventory)

Average inventory= (Beginning Inventory + Ending Inventory)/2

Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )

Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2

Calculated Inventory period= 42.58 days

Calculated Accounts Receivable period= 13.74 days

The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period

Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)

Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2

Calculated Accounts Payable period= 15.94 days