The time-period concept assumes that unlimited economic life of a company will be divided into regular intervals and that financial statements will be prepared for specific periods such as a month, quarter, or year. Each company is set up with the expectation that it will have an unlimited lifetime (remember the going concern assumption). But companies’ related parties (such as government, creditors, investors, management, customers, etc.) wish to have information about the activities and financial position of the company over certain periods. In order to meet these demands and give feedback, the unlimited economic lifetimes are divided into artificial time periods by accountants. The time-period concept (or alternatively periodicity concept) assumes that unlimited economic life of a company will be divided into artificial time periods and that financial statements can be prepared for specific periods such as a month, quarter, or year.