4.
Ram & Sons gets a contract of Rs. 200 crore to build a dam to be completed in
4 years. The management wants to ascertain profit or loss on this contract only
when it is completed. Is the management justified? Explain.
(2)
Answers
Answered by
1
Explanation:
No, Management is incorrect. According to Accounting Period Concept, management should prepare Accounts at regular intervals. The accounting period principle (or time period assumption) is an accounting principle which states that a business should report their financial statements appropriate to a specific time period. These periods can be quarterly, half yearly, annually, or any other interval depending on the business' and owners' preference.
Similar questions