Which of the Following Statements Regarding the Time-Period Concept Is

question 5

Multiple Choice

Which of the following statements regarding the time-period concept is NOT correct?

• A)Interim financial reports are rarely prepared.
• B)Accountants prepare financial statements for specific periods of time.
• C)The basic accounting period is one year.
• D)Most large companies use a calendar year for financial reporting.

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Definitions:

Negative Balance of Trade

A situation where a country's imports of goods and services exceed its exports, resulting in a trade deficit.

Net Exports

represents the difference between a country's total value of exports and its total value of imports, indicating the balance of trade.

Exports

Merchandise or services dispatched to a different country for the sake of trade or sales.

Imports

Goods and services bought by a country from other countries.