Question

    The life of the business is split into smaller intervals

    as per which of the following accounting concepts?
    A Financial Period Concept Correct Answer Incorrect Answer
    B Financial Year Concept Correct Answer Incorrect Answer
    C Accounting Period Concept Correct Answer Incorrect Answer
    D Interval Concept Correct Answer Incorrect Answer

    Solution

    As per Accounting Period Concept, The life of the business enterprise is long but the investors or other users of accounting, may require to assess the performance of the business at shorter regular intervals. Therefore, the life of the business is split into smaller intervals and each such period is known as an Accounting Period.

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