Accounting Period Concept: According to this assumption, the activities of an enterprise are divided into artificial time periods for preparing financial statements. In the absence of this assumption, the results of the business can be known only at the end of its life. An ascertainment of profit or loss for different accounting periods facilitates the comparison of the results of successive periods. The accounting period is usually of one year. It tells the performance of a business at regular intervals of time so that timely action can be taken. It provides useful information to interested parties like investors, management, owners, customers, employees, public, creditors, etc.