Question

Entire life of a business entity is divided into shorter time intervals, say of one year, under which of the following

1) Dual Aspect Principle

2) Going Concern Entity

3) Money Measuring Principle

4) Accounting Period concept

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Answer 1

Answer:

accounting period concept

Answer 2

The entire life of a business entity is divided into shorter time intervals, say of one year, under the accounting period concept. (Option 4)

• As per this concept of accounting, the entire life duration of any business is divided into intervals of usually a year.
• These periods are referred to as accounting periods and can be a financial year (April to March) or a calendar year (January to December).
• Such division ensures proper accounting and analysing of information for better and consistent understanding.