Commerce Exam > Commerce Videos > Accountancy Class 11 > Accounting Period (Periodicity) Concept
Accounting Period (Periodicity) Concept Video Lecture | Accountancy Class 11 - Commerce
|
64 videos|152 docs|35 tests
|
FAQs on Accounting Period (Periodicity) Concept Video Lecture - Accountancy Class 11 - Commerce
| 1. What is the accounting period concept? |  |
The accounting period concept, also known as the periodicity concept, is a fundamental accounting principle that states that the financial activities of a business should be divided into specific and equal time periods for reporting purposes. This concept ensures that financial statements are prepared at regular intervals, usually annually, so that users of the financial information can make meaningful comparisons and evaluate the performance and financial position of the business over time.
| 2. Why is the accounting period concept important in accounting? | |
The accounting period concept is important in accounting for several reasons. Firstly, it allows businesses to provide regular and timely financial information to stakeholders, such as investors, creditors, and management. This helps in decision-making and assessing the financial health of the business. Secondly, it facilitates the preparation of accurate and reliable financial statements by ensuring that transactions and events are recorded within a specific time frame. Lastly, it enables the application of accrual accounting principles, where revenues and expenses are recognized in the period they are earned or incurred, rather than when cash is received or paid.
| 3. How does the accounting period concept affect financial reporting? | |
The accounting period concept has a significant impact on financial reporting. It requires businesses to prepare financial statements, including the income statement, balance sheet, and cash flow statement, for a specific period, typically one year. This allows stakeholders to analyze and compare the financial performance and position of the business over multiple accounting periods. Additionally, it ensures the consistency and comparability of financial information, as businesses follow the same reporting period for each accounting cycle.
| 4. Can a business choose any accounting period for financial reporting? | |
While businesses have some flexibility in determining their accounting period, there are certain guidelines they need to follow. Generally, businesses should adopt an accounting period of 12 months, known as the fiscal year, which aligns with the natural operating cycle of the business. However, in certain circumstances, businesses may choose a non-standard accounting period, such as a shorter or longer fiscal year. These situations may arise due to changes in ownership, merger or acquisition activities, or specific industry requirements. In such cases, proper disclosure and justification are necessary to maintain transparency and comparability.
| 5. How does the accounting period concept relate to accounting adjustments? | |
The accounting period concept is closely related to accounting adjustments. Accounting adjustments are made at the end of each accounting period to ensure that revenues and expenses are properly recognized and reported. These adjustments include accruals, deferrals, estimates, and corrections of errors. By making these adjustments, financial statements are prepared on an accrual basis, reflecting the true economic impact of transactions and events during the accounting period. This enhances the accuracy and reliability of financial information and aligns with the objective of the accounting period concept.
About this Video
|
4.81/5 Rating |
|
Dec 22, 2024 Last updated |
Video Description: Accounting Period (Periodicity) Concept for Commerce 2024 is part of Accountancy Class 11 preparation.
The notes and questions for Accounting Period (Periodicity) Concept have been prepared according to the Commerce exam syllabus.
Information about Accounting Period (Periodicity) Concept covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Accounting Period (Periodicity) Concept.
Introduction of Accounting Period (Periodicity) Concept in English is available as part of our Accountancy Class 11 for Commerce & Accounting Period (Periodicity) Concept in
Hindi for Accountancy Class 11 course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for Accounting Period (Periodicity) Concept Video Lecture | Accountancy Class 11 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 11.
Information about Accounting Period (Periodicity) Concept
Here you can find the meaning of Accounting Period (Periodicity) Concept defined & explained in the simplest way possible.
Besides explaining types of Accounting Period (Periodicity) Concept theory, EduRev gives you an ample number of questions to practice Accounting Period (Periodicity) Concept tests,
examples and also practice Commerce tests.
|
64 videos|152 docs|35 tests
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
study material
,Objective type Questions
,Semester Notes
,MCQs
,Important questions
,Accounting Period (Periodicity) Concept Video Lecture | Accountancy Class 11 - Commerce
,video lectures
,Accounting Period (Periodicity) Concept Video Lecture | Accountancy Class 11 - Commerce
,Accounting Period (Periodicity) Concept Video Lecture | Accountancy Class 11 - Commerce
,shortcuts and tricks
,Summary
,Sample Paper
,Free
,practice quizzes
,Exam
,ppt
,Viva Questions
,Extra Questions
,Previous Year Questions with Solutions
,past year papers
,mock tests for examination
;
Study Accounting Period (Periodicity) Concept on the App
Students of Commerce can study Accounting Period (Periodicity) Concept alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Accounting Period (Periodicity) Concept,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Accounting Period (Periodicity) Concept is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup