Accounting period

What is an accounting period?

Definition

The length of time for which separate business records (financial statements) are prepared is known as accounting period.

Accounting period varies according to the nature of the business. It may consist of three months or six months but normally accounting period consists of one year.


Example

If a business maintains its records from January to December, it is called “Accounting Period” of that business.

Also Check:  Accrual Basis Definition

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