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During the life-time of an entity accoun...

During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept:
1) Conservation
2) Matching
3)Accounting period
4) None of the above

A

Conservation

B

Matching

C

Accounting period

D

None of the above

Text Solution

Verified by Experts

The correct Answer is:
Accounting period
Accounting amount refers to the span of your time at the top of that the monetary statements of associate enterprise square measure ready, to grasp whether or not it's attained profits or incurred losses throughout that amount and what specifically is that the position of its assets and liabilities at the top of that amount.
Such info is needed by totally different users at regular interval for numerous functions, as no firm will stay up for long to grasp its monetary results as numerous selections square measure to be taken at regular intervals on the idea of such info.
The Companies Act 1956 and also the taxation Act need that the financial gain statements ought to be ready annually.
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Knowledge Check

  • During the life- time of an entity ,accounting produces finamcial statements in accordance with which of the following accounting concept?

    A
    Matching
    B
    Conservatism
    C
    Accounting period
    D
    Cost

  • According to which Concept the same accounting methods should be used each year :

    A
    Prudence
    B
    Full Disclosure
    C
    Materiality
    D
    Consistency

  • Which of the following are the features of Prathan Mantri Jan Dhan Yojana ? 1. Ensuring financial inclusion of the poor 2. Enhancing financial literacy 3. Provision for accidental insurance to account holders 4. Allowing bank accounts with zero balance Select the correct answer using the code given below :

    A
    1 and 4 only
    B
    1,2 and 3 only
    C
    2 and 4 only
    D
    1,2,3 and 4

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