In general, the accounting period is one year. Many business entities, especially those that need financial performance for less than a year, follow the accounting period of 3 months or 6 months. It means that these firms preparefinancial statementsat the end of every quarter or every half yea...
An accounting period is the period of time covered by a company’s financial statements. Common accounting periods for external financial statements include the calendar year (January 1 through December 31) and the calendar quarter (January 1 through March 31, April 1 through June 30, July 1 th...
B:The Accounting period is linked to the Accounting Cycle in this way:"The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.Companies must systematically process financial ...
Definition:An accounting period, also called a reporting period, is the amount of time covered by thefinancial statements. In other words, it’s the time frame of activities that are summarized in the financials. Most general-purpose financial statements include business activities over the course ...
The accounting cycle is a series of steps that are always followed in a good accounting practice. The first step in the accounting...
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Whatever the accounting period is employed should be applied consistently over time. It’s the amount that books are balanced and therefore the financial statements are prepared. Generally, the accounting period consists of 12 months. However, the start of the accounting period differs consistent with...
A. Companies should recognize revenue in the accounting period in which it is earned. B. Companies should match expenses with revenues. C. The economic life of a business can be divided into artificial time periods. D. The fiscal year should correspond with the calendar year.Companies should ...
The accounting cycle is a series of steps that are always followed in a good accounting practice. The first step in the accounting...
How an Accounting Period Works There are typically multiple accounting periods currently active at any given point in time. For example, assume the accounting department of XYZ Co. is closing the financial records for the month of June. This indicates the accounting period is the month (June),...