What is accounting period with example?
An accounting period is the period of time covered by a company’s financial statements. For example, a company could have a fiscal year of July 1 through the following June 30. Its quarterly accounting periods would be July 1 through September 30, etc.Click to see full answer. Keeping this in consideration, what is accounting period?An…
An accounting period is the period of time covered by a company’s financial statements. For example, a company could have a fiscal year of July 1 through the following June 30. Its quarterly accounting periods would be July 1 through September 30, etc.Click to see full answer. Keeping this in consideration, what is accounting period?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.Also Know, what is the most common accounting period? Calendar Year The 12 months beginning Jan. 1 and ending Dec. 31 constitute a calendar year. It is the most commonly used type of accounting year by both individuals and businesses. Also to know, what are the types of accounting period? There are two kinds of accounting periods: Calendar Year – the accounting period begins on January 1 and ends on December 31 of the same year. Fiscal Year – the accounting period begins on the first day of any month other than January. Why is accounting period important?The accounting period is useful in investing because potential shareholders analyze a company’s performance through its financial statements that are based on a fixed accounting period.
