Asked by: Miloudi Jayantilalpersonal finance financial planning
What is periodicity assumption?
Last Updated: 16th September, 2021
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In this regard, what is periodicity concept in accounting?
In accounting, periodicity means that accountants will assume that a company's complex and ongoing activities can be divided up and reported in annual, quarterly and monthly financial statements.
Furthermore, what is periodicity with example? noun. Periodicity is the fact of something happening at regularly-spaced periods of time. An example of periodicity is the full moon happening every 29.5 days. YourDictionary definition and usage example.
Subsequently, one may also ask, what is the main purpose of Time Period assumption?
The time period assumption in accounting allows a company's activities to be divided into informal time periods so it can produce financial information which individuals can use to make decisions.
What is going concern assumption?
going concern assumption definition. An accounting guideline which allows the readers of financial statements to assume that the company will continue on long enough to carry out its objectives and commitments. In other words, the accountants believe that the company will not liquidate in the near future.