0
This concept defines the unit of time for which accounting data are collected. It is hard to calculate and meassure the profit if the business is trading for long periods. Therefore, Accountants estimate profitabilty in the short segments of time that we call Accounting periods.
Wiki User
∙ 16y ago
Wiki User
∙ 11y agoaccountig period is the peripod which shows profit or loss for a specific time it may be a month or a year and even a week.
Add your answer:
Earn +20 pts
What is accounting period concept?
Accounting period is the minimum time period for which comany prepare it's books of accounts.
Accounting period concept?
account period accounting period depends on the person carrying the business. Normaly it starts from 1st april. people may have calendar year as an accounting year.
Does The cash basis of accounting commonly results in financial statements that are not comparable from period to period?
Cash is the main transaction in an accounting , it will affect from period to period in financial statement
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
Is accounting staff salary a period cost or a product cost?
Accounting staff are considered executive costs which would be a period cost.
What is accounting period concept?
Accounting period is the minimum time period for which comany prepare it's books of accounts.
Accounting period concept?
account period accounting period depends on the person carrying the business. Normaly it starts from 1st april. people may have calendar year as an accounting year.
Does The cash basis of accounting commonly results in financial statements that are not comparable from period to period?
Cash is the main transaction in an accounting , it will affect from period to period in financial statement
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
Is accounting staff salary a period cost or a product cost?
Accounting staff are considered executive costs which would be a period cost.
What is accounting period conversation?
An accounting period refers to the interval between two points in time during which the financial activity of a business is measured.
Why are closing entries required at the end of an accounting period?
The closing entries in an accounting period are important because they will be used as opening entries in the next period. They help people to calculate the balances and accruals of a predetermined period.
What does red ink entry mean?
it is a intrest which is calculated for the period starting from closing of accounting period to the date of maturity of the bill of exchange issued during accounting period. it is reversal entry
What is the accounting cycle?
Accounting cycle comprises all of the accounting activities, from the recording of transaction up to the preparation of financial statements, which are repeatedly performed in every accounting period.
What are the three accounting period?
The time taken to perform a particular set of financial statements is called accounting period. It differs with various reports and company types. The major 3 accounting periods are as follows:CalenderPiscalNatural business
Why are adjusting entries needed at the end of accounting period?
Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust expenses and revenues to the accounting period where they actually occurred. Generally speaking, they are adjustments based on reality, not on a source document. This is in sharp contrast to entries during the accounting period (such as utility bills or fees for services rendered) that depend on source documents.
What are the characteristics of final accounts?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
