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It reports the changes in the capital throughout the period caused by the owner’s capital investments.

Revenues and expenses are reported in it.

It reports operation results of a business for a specific period of time.

It provides information about the financial position of the company.

It reports assets and liabilities for a specific time period.

Time Period Concept

The Revenue Recognition Principle

Matching Principle

Expense Recognition Principle

Cash basis accounting

Only I

Only II

I and II

III

III and IV

Only II

Only III

I and II

I and III

I, II and III

Relevant

Faithfully representable

Comparable

Timely

Creative

Chart of accounts

Balance sheet

Income statement

Trial balance

Account balance

Managers

Investors

Creditors

Customers

Suppliers

Identification and Recording

Recording and Communicating

Communicating 

Identification, Recording and Communicating

Identification and Communicating

Expense

Loss

Cost

Revenue

Asset

Historical cost principle

Fair value principle

Materiality

Monetary unit assumption

Relevance

Straight-line depreciation

Non-current asset

Current asset

Book value

Fair value

Income statement

Balance sheet

Statement of owner’s equity

Adjusted trial balance

Post-Closing Trial Balance

Financial Statement

Income Statement

Balance Sheet

Post-Closing Trial Balance

Revenue Statement

The time-period concept 

Matching Principle 

Revenue recognition principle 

Deferred revenue concept 

Deferred expense concept

Depreciable amount

Depreciation

Amortisation

Depreciation expense

Useful life

Adjusted trial balance

Balance sheet

Income statement

Statement of owner’s equity

Income Summary Account

It is referred to as the book of original entry.

In journal debits are listed second.

Transactions are recorded in chronological order.

It includes titles and references (codes) of accounts used to record transactions.

It contributes to the recording process in terms of disclosing the details of transactions in one place.

Dual effect

External transaction

Internal transaction

Basic Accounting Equation

Identification of transaction

the depreciable asset’s unrecorded costs

the revenues recognized after the cash is received

the expenses not yet paid but recorded at the end of the accounting
period

the expenses collected but not yet recorded at the end of the accounting
period 

the expenses incurred but not yet paid or recorded at the end of the accounting
period

Accounting periods should be more than 5 years.

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.

Accounting periods may be approximately weekly for preparing.

The time period principle is the concept that a business should report the financial results of its activities over a standard time period which is usually about 2 or 3  years.

The time period concept is one of the fundamental accounting principles and rules, applicable to only cash accounting.