An Accounting Time Period That Is One Year in Length

question 76

Multiple Choice

An accounting time period that is one year in length but does not begin on January 1 is referred to as

• A) a fiscal year.
• B) an interim period.
• C) the time period assumption.
• D) a reporting period.

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Definitions:

Extraordinary Items

Unusual and infrequent gains or losses that are reported separately on the income statement to provide a clearer picture of a company's ongoing operational performance.

Accounting Principle

A general rule or guideline that prescribes the methodology for recording financial transactions and preparing financial statements.

Asset Account

An accounting record that shows the amount of economic resources owned or controlled by an entity.

Liability Account

An account on the balance sheet representing obligations to pay money or deliver goods or services to another party in the future.