Final answer:
The Time Period Assumption is the principle that ensures financial transactions and statements cover a specific time span, which aids in comparing financial data across periods. The correct answer for the question is option (A)
Step-by-step explanation:
The principle that stipulates all transactions and statements must cover a specific time span, which is clearly displayed on all financial reports, is known as the Time Period Assumption. This accounting principle is essential in ensuring that the performance and financial position of a company can be tracked over distinct and consistent time intervals. This allows for the comparison of financial data across different periods, facilitating trend analysis and decision-making.