Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 12)
Which of the following is an application of the accounting period principle?
Recording assets and expenses at their actual price paid.
The business owner’s personal financial affairs and business finances should be recorded separately.
Dividing the lifetime of a business into successive accounting periods.
The business is expected to continue operating for the foreseeable future.
Explication
The accounting period principle divides the business's life into regular accounting periods.