《principles of accouning》chap 3.pptxVIP

Chapter 3Accrual Accounting Income;3;LO 1;LO 1;LO 1;The Time-Period Concept Accounting information is reported at regular intervals. The basic accounting period is one year. Around 60% of large companies use the calendar year from January 1 through December 31. A fiscal year may end on a date other than December 31. Companies also prepare financial statements for interim periods of less than a year (month, quarter, semi-annual).;3;The Revenue Principle Deals with two issues: When to record (recognize) revenue What amount of revenue to record;LO 2;LO 2;The Expense Recognition Principle Includ