Commercial Applications
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
- Money measurement concept
- Accounting period concept
- Business entity concept
- Realisation concept
GAAP
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Accounting period concept
Reason — The Accounting Period Concept divides the entire life of the firm into time intervals (usually one year) for the purpose of financial reporting. This enables interested parties to judge the progress of the business at regular intervals.
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