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.

---

Definitions:

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearers or named party.

Deposit

A sum of money placed into an account, typically in a bank, to be kept safe and potentially earn interest.

Interest Bearing Account

A bank account that yields interest income on the deposited funds over time, offering a return to the account holder.

Disburses Cheques

The process of issuing and distributing checks by an individual or entity, usually for payment purposes.