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accounting period is the lifetime of a business and from that life we tend to determine its position and performances depending on the outcome results of the calculations
The life of the business is broken up into arbitrary periods for the purpose of measuring profit.
The accounting period is usually a 12 month period for accurate reporting of financial position (profit/loss or equity value). In the U.S. a 12 month period is utilized to coincide with the tax reporting requirements. A short-year may be done if the business is sold or you may for your own business "forecast" use an arbitrary period. Banks want financial reports usually for a full year also.