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CHAPTER 3: PREPARING FINANCIAL STATEMENTS

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FINANCIAL Accounting Fundamentals, Ch. 3, Wild, 2009. Page 1 CHAPTER 3: PREPARING FINANCIAL STATEMENTS I. TIMING AND REPORTING A. The Accounting Period Time period assumption an organization s activities can be divided into specific time periods. Examples: a month, a three-month quarter, a six-month interval, or a year Accounting (Reporting) periods length of time covered by FINANCIAL STATEMENTS . Most companies use a year as their primary accounting period. Annual FINANCIAL STATEMENTS reports covering a one-year period. Interim FINANCIAL STATEMENTS covering one, three, or six months of activity.

Financial Accounting Fundamentals, Ch. 3, Wild, 2009. Page 1 CHAPTER 3: PREPARING FINANCIAL STATEMENTS I. TIMING AND REPORTING A. The Accounting Period Time period assumption—an organization’s activities can be divided into specific time periods. Examples: a month, a three-month quarter, a six-month interval, or a year

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