Ms. Sandipa is the accounts executive for a company called SS Enterprises. Her job description requires her to supervise the process of recording of the transactions of business and to ensure that all accounting assumptions are taken care of. However, her junior executive is confused about the concepts of the accounting period assumption and the Separate entity assumption.

Elaborate on how Sandipa can explain the concepts to her junior with the help of a suitable example.

Answer rating: 100% (QA)

ACCOUNTING PERIOD ASSUMPTION Under this concept the economic life of a business is divided into smaller sub parts known as periods It is also known as Periodicity principle This period practically con... View the full answer