What is the best definition of an accounting period?
A)Any 12-month period
B)The calendar year
C)The period between any two balance sheet dates
D)The period in which the major income-producing activity occurs
E)The period between any two income statement dates

Question

Quizplus · Accepted Answer

An accounting period is the period between any two balance sheet dates, also known as the fiscal year or reporting period. It is typically either 12 months or a quarter of a year (three months) and is used to measure a business's financial performance and make important decisions.

Answer: E
 Another definition of an accounting period is the period between any two income statement dates, which is also typically either 12 months or a quarter of a year. This is often used to track revenue and expenses and determine a business's profitability over a certain period of time.

What Is the Best Definition of an Accounting Period