Accounting period - accounting principle, Financial Management

Accounting Period - Accounting Principle

Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the results of operations of business during the relevant period and the financial position at the end of relevant period.

Since per the Going concern concept the operations of the business will continue for an indefinite period within the procedure of generation of income. Complete picture of the financial affairs of the business could be available only at time of the liquidation of the business, but this information will be of extremely little use to all of the stakeholder for decision making reasons. In order to provide timely information to all the stakeholders this indefinite period is split into smaller periods which are called as Accounting Period.

Generally the accounting period is of twelve months, but in case of new business, changes in the accounting period, preparation of interim financial statement, etc. The accounting period could be different from twelve month period.

Posted Date: 2/6/2013 12:54:32 AM | Location : United States







Related Discussions:- Accounting period - accounting principle, Assignment Help, Ask Question on Accounting period - accounting principle, Get Answer, Expert's Help, Accounting period - accounting principle Discussions

Write discussion on Accounting period - accounting principle
Your posts are moderated
Related Questions
The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe

a) i = 800 units, ii = 250 units, iii = 60% b) Explanation and Definition of the MOS. Play-it has the better MOS in absolute terms, although Tread-it has the better MOS when mea

What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x   365days This is the length of time taken to pay suppliers. The rat

1. Each student has been allocated one Australian company. This information is available in the unit website. You should check that a company is assigned to you. 2. It is your r

Q. Objective of the business? Working capital is needed for the following purposes For the purpose of the raw material, components and spares To pay the Wages and the sal

Collar A collar can be established by holding a share, along with purchasing a protective put and writing a covered call, where both options at out-of-money.. For Example

To whom it may concern, I wanna someone to help me to get prepared for my exam. is it possible to work together? 1. Managerial Aspects of the Market for Foreign Exchange

The objective of the assignment is to develop an understanding of the factors that influence changes in the prices of stocks. *A person has $ 100,000 that they have to invest in s

Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal

This task must be completed in order from 1 to 11 as identified in both the Income Statement and the Balance Sheet. In addition, all answers must cite relevant supporting formulas