An accounting period is…?
Select ONE answer:
- any period for which an entity chooses to prepare its accounts.
- a calendar year.
- any twelve-month period.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct
- An accounting period may be but does not have to be, a calendar year.
- An accounting period can be of any duration. However, for tax purposes, as opposed to accounting purposes, accounts must be prepared for periods not exceeding 12 months.
- Not correct
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