Vidyalelo
Commerce · Q149

Accounting

Graduate and Post Graduate · Commerce · question 149

Q149

Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?

A.
Fiscal year
B.
Calendar year
C.
Accounting period
Answer
D.
Accrual period

Answer: Option C

Solution

Answer: Option C
Solution:
Accounting period is time spann into which the total life of a business is divided for the purpose of preparing financial statements. This period defines the time range over which business transactions are accumulated into financial statements, and is needed by investors so that they can compare the results of successive time periods.