The length of time covered by a set of periodic financial statements, normally a year for most companies, is referred to as the:
A)Fiscal cycle.
B)Natural business year.
C)Accounting period.
D)Business cycle.
E)Operating cycle.

Question

Quizplus · Accepted Answer

The length of time covered by a set of periodic financial statements is referred to as the accounting period. It is typically one year for most companies, but can vary depending on the company's reporting requirements or fiscal year-end. Option A refers to the time it takes for a business to complete one cycle of operations. Option B refers to a company's natural operating cycle, which may not necessarily align with the accounting period. Option D refers to fluctuations in the economy over time. Option E refers to the time it takes for a company to convert its inventory to cash.

The Length of Time Covered by a Set of Periodic