An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements, and is needed by investors so that they can compare the results of successive time periods.
what is meant by accounting period?
An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements, and is needed by investors so that they can compare the results of successive time periods.
what is the end of accounting period?
An accounting period ends at the earliest of the following: Twelve months after the start date. At the end of the company’s previous accounting period.
what is accounting period with example?
An accounting period is the period of time covered by a company’s financial statements. For example, a company could have a fiscal year of July 1 through the following June 30. Its quarterly accounting periods would be July 1 through September 30, etc.
Why is accounting period important?
The accounting period is useful in investing because potential shareholders analyze a company’s performance through its financial statements that are based on a fixed accounting period.
What are the types of accounting period?
There are two kinds of accounting periods: Calendar Year – the accounting period begins on January 1 and ends on December 31 of the same year. Fiscal Year – the accounting period begins on the first day of any month other than January. You may also read,
What is duality concept?
DUALITY CONCEPT Definition. DUALITY CONCEPT is the foundation of the universally applicable double entry book keeping system. It stems from the fact that every transaction has a double (or dual) effect on the position of a business as recorded in the accounts. Every financial transaction behaves in this dual way. Check the answer of
What is period concept?
Definition: The time period principle is a financial accounting principle that assumes all companies and organizations can divide activities into time periods. These time periods are often called accounting and reporting time periods and can be weekly, monthly, semi-annually, annually, or any other time interval.
What is the most common accounting period?
Calendar Year The 12 months beginning Jan. 1 and ending Dec. 31 constitute a calendar year. It is the most commonly used type of accounting year by both individuals and businesses. Read:
What is contra accounting?
contra account definition. An account with a balance that is the opposite of the normal balance. For example, Accumulated Depreciation is a contra asset account, because its credit balance is contra to the debit balance for an asset account. The contra accounts cause a reduction in the amounts reported.
What is revenue recognition concept?
revenue recognition principle definition. The accounting guideline requiring that revenues be shown on the income statement in the period in which they are earned, not in the period when the cash is collected. This is part of the accrual basis of accounting (as opposed to the cash basis of accounting).
What is a financial year in accounting?
financial year. Accounting period that can start on any day of a calendar year but has twelve consecutive months (52 consecutive weeks) at the end of which account books are closed, profit or loss is computed, and financial reports are prepared for filing. Called fiscal year in the US.
What are the basis of accounting?
A basis of accounting is the time various financial transactions are recorded. The cash basis (EU VAT vocabulary Cash accounting) and the accrual basis is the two primary methods of tracking income and expenses in accounting.
What is accounting paper?
An accounting paper has always been a tough and boring task. An accounting paper always consists of strong topics. Term papers on accounting, accounting essay, a research paper on accounts, a college report or a high school assignment, our writers are expert in doing any kind of accounting paper.
How long is a month in accounting?
Definition of Accounting Month. Accounting Month means each period of approximately 30 days ending on the last day of each calendar month in any financial year of the Company.
