The Length of Time Covered by a Set of Periodic

question 5

Multiple Choice

The length of time covered by a set of periodic financial statements,primarily 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.

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Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be usable by a company, influencing depreciation calculations.

Plant Asset

A plant asset is a long-term tangible asset used in the operation of a business that is not intended for resale, such as machinery, buildings, and equipment.

Market Value

The immediate cost at which one can buy or sell a service or asset.

IRS

The Internal Revenue Service, the U.S. federal agency responsible for administering and enforcing the tax laws and collecting federal taxes.