The time period for which the income statement is prepared is a(n)
A) calendar year.
B) accounting period.
C) fiscal period.
D) accounting cycle.

Question

Quizplus · Accepted Answer

The income statement is prepared for a specific accounting period, which can be monthly, quarterly, or annually, depending on the company's accounting cycle. Therefore, option B, accounting period, is the correct answer. Option A, calendar year, and option C, fiscal period, are not specific enough and could be confusing. Option D, accounting cycle, is too broad and does not accurately describe the period for which the income statement is prepared.

The Time Period for Which the Income Statement Is Prepared