Which term means a block of time covered by an accounting report?

Which term means a block of time covered by an accounting report?

• A. GAAP
• B. Financial reports
• C. calendar year
• D. Accounting Period

Answer: (D)

A financial report is prepared for a defined span of time—the accounting period. In accounting, the accounting period is the block of time covered by the statements, and it can be monthly, quarterly, or yearly. GAAP sets the rules for recognizing and presenting those numbers, not the length of the reporting window. The term “calendar year” is a specific type of accounting period tied to the annual calendar, but the general label for any such time span is accounting period. Therefore, accounting period best describes the block of time covered by the report.

A financial report is prepared for a defined span of time—the accounting period. In accounting, the accounting period is the block of time covered by the statements, and it can be monthly, quarterly, or yearly. GAAP sets the rules for recognizing and presenting those numbers, not the length of the reporting window. The term “calendar year” is a specific type of accounting period tied to the annual calendar, but the general label for any such time span is accounting period. Therefore, accounting period best describes the block of time covered by the report.