In order to make comparison easier,financial statement time periods should
A) end during the peak season.
B) be of equal length.
C) correspond to the calendar year.
D) comply with income tax regulations.

Question

Quizplus · Accepted Answer

For accurate comparison, financial statement time periods should be of equal length. This means that the time period for financial statements should be consistent (e.g. monthly, quarterly, or annually) and should be the same length for each period being compared. Ending during the peak season or corresponding with the calendar year may not ensure the periods are of equal length, and complying with income tax regulations may not necessarily align with the needs of comparison.

In Order to Make Comparison Easier,financial Statement Time Periods Should