Accounting Period

 

The term accounting period or accounting period refers to an entity recording transactions that occur within a specified period or period. After that, it will be concluded that in that period the business has been operating results accounting firm in slough and at the end of that period, what is the business status? The accounting period or accounting period can be any period, but not more than 1 year, and if the entity's accounting period is 1 year, that accounting period can be initiated at any time. It can start on January 1 like a calendar year or not.



Types of Business

We can categorize 3 types of profit-oriented businesses as follows:

1. Service Businesses are businesses that generate revenues from the provision of services. That service is intangible, such as theme parks, hostels, car rental businesses, cinemas, clinics, hotels, buses, etc.

2. Trading business (Merchandising Businesses) or commercial businesses. It is a business that operates by buying products and selling them out at a higher price. Without processing or converting the product in any way, such as department stores Convenience store Super Market Car sales companies, etc.

3. Industrial business (Manufacturing Businesses) or manufacturing businesses It is a business that has production operations. That is, the purchased raw materials are processed into finished products and sold out. This type of business includes Car factory Tile factory, weaving factory, etc.

Concepts and principles of accounting

There are many parties to the users of accounting information, whether they are business executives, creditors, investors, government agencies, or others, and people who use these accounting information sometimes want to use accounting information in a different direction. For example, management wants to show operating results with less profit or loss. In order to pay less tax Or not paying taxes at all On the other hand, the IRS, a government agency responsible for collecting taxes, wants to show truthful information. In order to properly collect taxes The government will use the money to develop the country in the future.

Therefore, in order to make the accountancy firm in slough information presented by the accounting department reliable and fair to all users of accounting information. An accountant is therefore required to prepare accounting principles in accordance with Generally Accepted Accounting Principles, referring to the traditions, rules, and methods that describe commonly used accounting practices.

Certified Accountants and Auditors Association of Thailand The accounting assumptions have been defined in two accounting frameworks:

1. Accrual basis Financial statements are prepared on an accrual basis to achieve the aforementioned objectives under an accrual basis. Accounting transactions and events are recognized when they arose and not when cash or cash equivalents were received or paid. The transactions will be recorded and presented in the financial statements according to the relevant period. Financial statements that are prepared on an accrual basis, in addition to providing information to users of the financial statements about past transactions related to receiving and paying cash. It also provides information cheap accountant in slough about the obligations that an entity will have to pay in cash in the future and information about resources that will receive it in future cash. Therefore, financial statements can provide information about past transactions and events that are of benefit to the people. Use financial statements to make economic decisions.

2. Continuous operations financial statements are generally made on the assumption that an entity will continue to operate and survive in the future, and therefore it is assumed that the entity has no intention or need to liquidate or reduce the size of its operations. Significance If the entity has such intention or necessity The financial statements must be prepared on a different basis and the basis used in the financial statements must also be disclosed.

 

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