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

Question

Quizplus · Accepted Answer

Financial statement time periods should be of equal length to make comparisons easier. If the time periods are not equal, it becomes difficult to compare the financial performance of one period to another. While complying with income tax regulations and corresponding to the calendar year are important, they are not as critical as having equal time periods for comparison purposes. Ending during the peak season may also not always be relevant, as different industries may have different peak seasons.

Financial Statement Time Periods Should Be of Equal Length