Write/note on accounting period concept and cost concept
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Answer:
Accounting period concept : According to this concept, the life of the business is divided into a series of relatively short accounting periods of equal lengths for studying the results shown by the business.
Cost concept: This concept of accounting states that all acquisition of items (such as assets or things needed for expending) should be recorded and retained in books at cost. Thus, if a balance sheet shows an asset at a certain value it should be assumed that this is its cost unless it is categorically stated otherwise.
Explanation:
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Answer:
Explanation:
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