The ___________ concept requires that financial statements be prepared on a periodic basis.
a. Accounting period
Explanation: The accounting period concept is a key part of financial reporting. It requires that financial statements be prepared on a periodic basis, typically every quarter or year. This ensures that businesses have a clear picture of their financial performance over time.
While the accounting period concept is important for financial reporting, it can also be a challenge for businesses. This is because businesses must keep track of their financial transactions and prepare financial statements on a regular basis. This can be time-consuming and costly.
Businesses can use accounting software to help manage their finances and prepare financial statements. This can make the accounting period concept less of a challenge and help businesses keep track of their financial performance over time.