Financial Accounting Class 11

LEARNING OUTCOMES: A Quick Recap of: Principles of Accounting: Accounting Period Full Disclosure Materiality Principle Objectivity Principle Revenue Realisation Principle Meaning and Types of Source Documents Objectives After going through this , you shall be able to understand the following concepts. • Source Documents Cash Memo Invoice or Bill Receipt Pay-in- Slip Cheque 7. Accounting Period Concept Even though a business is assumed to continue forever (going concern assumption) but it is necessary to keep accounts in such a way that the results are known at frequent intervals. This time interval is known as “Accounting Period”. While accounting periods might vary in terms of reporting dates but they must be consistent. The various users of accounting information require financial information at regular intervals, so we cannot wait for the liquidation of the company for the preparation of financial statements. Hence, as per th...