what do you mean by accounting period concept ???rn
According to the Accounting Period Concept, the life of an enterprise is divided into different accounting periods such as, yearly, half-yearly, quarterly, monthly, fortnight, day, etc. It helps in measuring and assessing the performance of a business in each period and at regular intervals.
Usually the accounting period is taken as one year. The accounting period may be a calendar year (i.e. January 01 to December 31) or a financial year (i.e. April 01 to March 31).
any buisness enterprise is opened to run for life time & results can be ascertained only in winding up of buisness....but buisness cant be run or continued without knowing profit or loss.so life of buisness is divided into period and that is known as acconting period principal...that may be
according to income tax:1 april to 31 march
calender year:1 jan to 31 dec
acc. period :no time it may be diwali to diwali
holi to holi