What Are The Types Of Accounting Period?

What are the basic accounting concepts?

These basic accounting concepts are as follows:Accruals concept.

Revenue is recognized when earned, and expenses are recognized when assets are consumed.

Conservatism concept.

Consistency concept.

Economic entity concept.

Going concern concept.

Matching concept.

Materiality concept..

What is a calendar year accounting period?

A “tax year” is an annual accounting period for keeping records and reporting income and expenses. … Calendar year – 12 consecutive months beginning January 1 and ending December 31. Fiscal year – 12 consecutive months ending on the last day of any month except December.

What is the 8 branches of accounting?

The famous branches or types of accounting include: financial accounting, managerial accounting, cost accounting, auditing, taxation, AIS, fiduciary, and forensic accounting.

What are the different types of accounting periods?

What Are the Types of Accounting Period?The Calendar Year. Usually, the accounting period follows the Gregorian calendar year that consists of twelve months starting from January 1 to December 31. … Fiscal Year. The fiscal year refers to an annual period that does not end on December 31. … 4–4–5 Calendar Year.

How long is an accounting period?

12 monthsAn accounting period, in bookkeeping, is the period with reference to which accounting books of any entity are prepared. It is the period for which books are balanced and the financial statements are prepared. Generally, the accounting period consists of 12 months.

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.

What time period does a balance sheet cover?

The balance sheet is a snapshot of the business’ financial standing at a single point in time. For example, an accounting period is typically 12 months long. The line items or accounts on the balance sheet would reflect the number of assets and liabilities at the final moment of the accounting period.

What are the three golden rules of accounting?

Debit the receiver and credit the giver. The rule of debiting the receiver and crediting the giver comes into play with personal accounts. … Debit what comes in and credit what goes out. For real accounts, use the second golden rule. … Debit expenses and losses, credit income and gains.

What are the 4 types of accounting?

Though different professional accounting sources may divide accounting careers into different categories, the four types listed here reflect the accounting roles commonly available throughout the profession. These four branches include corporate, public, government, and forensic accounting.

What are the 2 types of accounting?

The two main accounting methods are cash accounting and accrual accounting.

Why is 1st April financial year?

Under the old Julian calendar, April 1st coincided with the Hindi festival of Vaisakha i.e. Hindi new year, so the East India Company in Bengal decided to synchronise it’s financial year with the Hindi calendar to ease financial transactions.

What is a 12 month accounting period called?

An accounting period is the span of time covered by a set of financial statements. … If the accounting period is for a twelve month period ending on a date other than December 31, then the accounting period is called a fiscal year, as opposed to a calendar year.

What is a chargeable accounting period?

The chargeable accounting period is usually the period for which the company makes up a set of accounts. For example, a company prepares a set of accounts for the year ended 31 December 2010. … There are also special rules which apply to determine when a chargeable accounting period begins and when it ends.

What are the main types of accounting?

Though there are eight branches of accounting in total, there are three main types of accounting, according to McAdam & Co. These types are tax accounting, financial accounting and management accounting. Management accounting is useful to all types of businesses and tax accounting is required by the IRS.

What are the 10 accounting concepts?

Popular Concepts of Accounting (10 Concepts)Money Measurement Concept: … Business Entity Concept: … Going Concern Concept: … Cost Concept: … Dual Aspect Concept (Accounting Equation Concept): … Accounting Period Concept: … Matching Concept: … Realisation Concept:More items…