All of the following statements are true of an income statement except:
A)The period of time covered by an income statement is the company's accounting period.
B)A fiscal year is any accounting period less than 12 months in length.
C)The length of a company's accounting period may vary.
D)Every business prepares an annual income statement.

Question

Quizplus · Accepted Answer

A fiscal year is typically a 12-month period used for accounting purposes, not less than 12 months. The statement in B is incorrect because it defines a fiscal year as any accounting period less than 12 months in length, which is not accurate.

All of the Following Statements Are True of an Income