An infrastructure company building highways has a contract to construct road of 25 kms the project is likely to be completed in 4years . It has approached a bank seeking finance The bank has requested them to prepare yearly accounts whereas the company has argued that since the project shall be completed in 4 years projected accounts should be prepared for the end of the project. Is the company correct in it's view. Give reasons
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Answer:
No , company is not correct in its point of view as the project require raw materials and many things to construct the road .
Explanation:
the company has to make accounts on yearly basis so that the profit and loss can be find easily and closing balance can also be find easily......
making accounts on yearly basis is correct either on calendar year or accounting year
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