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.

Question

Quizplus · Accepted Answer

The length of time covered by a set of periodic financial statements, primarily a year for most companies, is referred to as the accounting period. It is a standard length of time for which financial statements are prepared and generally corresponds with the company's fiscal year. A calendar year is a 12-month period that begins on January 1st and ends on December 31st, while a fiscal year is any 12-month period that a company uses for accounting purposes. The business cycle refers to the natural rise and fall of economic activity over time. The natural business year is a concept that pertains to seasonal businesses and refers to a 12-month period that aligns with the company's busiest season.

The Length of Time Covered by a Set of Periodic