Asked by Gabrielle Monique on Jun 17, 2024
Verified
The length of time covered by a set of periodic financial statements,primarily a year for most companies,is referred to as the:
A) Fiscal year.
B) Natural business year.
C) Accounting period.
D) Business cycle.
E) Calendar year.
Periodic Financial Statements
Reports that are issued at regular intervals, such as monthly, quarterly, or annually, summarizing a company's financial position.
Accounting Period
A specific period of time used for financial reporting purposes, typically a quarter or year.
- Define the terms related to the accounting period, such as fiscal year and natural business year, and their importance in financial reporting.
Verified Answer
PS
Pavneet SinghJun 21, 2024
Final Answer :
C
Explanation :
The length of time covered by a set of periodic financial statements is referred to as the accounting period. While some companies may have different accounting periods, the most common is a year, also known as a fiscal year. The natural business year is a concept related to determining the best time to measure a company's performance, while the business cycle refers to the recurring pattern of economic expansion and contraction. The calendar year is simply the 12-month period that starts on January 1 and ends on December 31.
Learning Objectives
- Define the terms related to the accounting period, such as fiscal year and natural business year, and their importance in financial reporting.