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Class : 11
Unit : Account

Give the meaning of accounting period concept.

Ans : Every business man wants to know the profit or loss and financial position of their business at the end of a certain period. Although, accounting is going on process, but books of account are closed at the end of a certain period and that period is known as accounting period. Accounting period is generally for one year. In Nepal, accounting period starts from 1st Shrawan and ends on 31st Ashadh every year. At the end if accounting period, income statement and the balance sheet are prepared.
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