What is an Accounting Period?
An accounting period is the time interval reflected by the data in a financial statement.
How Does an Accounting Period Work?
Firms prepare financial statements for publication and tax reporting based on an accounting period. Financial statements comprise data generated by a company's operations during the accounting period. The accounting period for publishing financial statements is usually a quarter (e.g. January 1st, 2009 through March 31st, 2009), while the accounting period for tax reporting is usually a year (e.g. January 1st, 2009 – December 31st, 2009).
Why Does an Accounting Period Matter?
An accounting period is a discrete and uniform length of time which serves as a basis for reporting and analyzing companies' financial performance. The uniformity of accounting periods also allows for comparative analysis between companies.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Is your auto loan's annual percentage rate (APR) higher than 6%? Or are your monthly payments on your car more than you can handle? Here's some good news: if you have good or excellent...Read More →
High unemployment is affecting almost everyone in one way or another. Recent college graduates...Read More →
A young man named Sam Walton grew up during the Great Depression. As you can imagine, times were hard. But Sam did everything he could to earn an extra buck -- as a boy he sold the surplus...Read More →
With the major averages dropping like stones and investors seeing a sea of red on their computer screens, you might think there aren't any winning...Read More →