Question

1. Preparing financial statements at least annually is an application of which of
the following accounting concepts?
A Historical cost
C. Stable monetary unit
B. Accrual basis
D. Time period
​

Answer 1

Answer:

D Time period or Periodicity concept

Explanation:

says that financial statements should be prepared at regular intervals so as to identify the profit or loss of the particular financial year.

Answer 2

The correct answer is OPTION D: Time Period.

• A set of high-level reports that summarise a company's financial performance, financial status, and cash flow are known as financial statements.
• The income statement, balance sheet, and cash flow statement are among them.
• A balance sheet is one of the financial statements.
• It depicts an entity's assets, liabilities, and stockholders' equity as of the report date.
• In this report, all assets must equal the sum of all liabilities and equity. The asset information on the balance sheet separates current and long-term assets.
• A business's financial statement can be prepared for any period and at any point in time.
• Several businesses produce financial statements every month to keep a close check on their finances.
• The accounting cycles of other companies are lengthier.
• At the end of a company's fiscal year, financial statements must be prepared.