What Is the Accounting Cycle?
Accounting period, (fiscal period): The premise is to divide the continuous business process into appropriate time periods based on the assumption of continuous operation, and settle the settlement once at the end of each period. , Called the accounting period. For example, one month, one quarter, one year.
Accounting cycle
Right!
- Chinese name
- Accounting cycle
- Foreign name
- accounting period
- E.g
- One month, one quarter, one year
- Measure
- Usually measured in "years"
- Before
- Continuous operation hypothesis
- Accounting period, (fiscal period): The premise is to divide the continuous business process into appropriate time periods based on the assumption of continuous operation, and settle the settlement once at the end of each period. , Called the accounting period. For example, one month, one quarter, one year.
- Not the same as the accounting cycle
- The system for generating accounting information is the accounting process, and the repetitive accounting process is called the accounting cycle. The accounting equation can make the accounting statements seamlessly integrated, and borrowing ... It starts at the beginning of the accounting period and ends at the end of the accounting period. The cycle is repeated, so it is called the accounting cycle
- 1. The accounting period is usually measured in "years", which is called the accounting year. Chinese enterprise accounting standards stipulate that Chinese enterprises use the calendar year as the corporate accounting year, that is, from January 1 to December 31 of the Gregorian calendar. In addition, it can be further divided into quarters and monthly. With the assumption of the accounting period, there are such statements as "how much profit in a certain year" and "how much loss in a certain year".
- 2. The accounting period is assumed to be the theoretical basis for accounting principles such as income and expense ratios, accrual basis, division of revenue expenditures and capital expenditures.