Which of the Following Statements Is Incorrect

question 100

Multiple Choice

Which of the following statements is incorrect?

• A) An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.
• B) Interim financial reports can be based on one-month or three-month accounting periods.
• C) The fiscal year is any 12 consecutive months used by a business as its annual accounting period.
• D) Property, plant, and equipment are long term assets.
• E) The cash basis of accounting is consistent with GAAP.

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Definitions:

Average Accounts Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit over a specific period.