The expenses and incomes pertaining to full trading period are taken to the Profit and Loss Account of a business, irrespective of their payment or receipt. This is in recognition of

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The accrual concept in accounting means that expenses and revenues are recorded in the period they occur, whether or not cash is exchanged. This concept ensures that financial statements reflect all expenses and incomes of the trading period to which they relate, making the Profit and Loss Account more accurate and representative of the business's actual performance during that period.

The Expenses and Incomes Pertaining to Full Trading Period Are