Chapter 4, Problem 1MC

Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements?

A. fiscal year

B. interim period

C. calendar year

D. fixed year

To determine

Concept introduction:

Stockholder’s Equity:

Stockholders Equity includes the paid up amount of all stocks (Common as well as preferred) issued and retained earnings balance. It represents the amount owed to the stockholders by the company. Stockholders Equity is the section of balance sheet’s equity part.

To choose:

The option that indicates the accounting period less than a year

Answer to Problem 1MC

Interim Period

Explanation of Solution

Explanation for correct answer:

Interim Period indicates the accounting period less than a year. Hence the correct option is B.

Explanation for incorrect answers:

A. Interim Period indicates the accounting period less than a year. Hence this option is incorrect.

C. Interim Period indicates the accounting period less than a year. Hence this option is incorrect.

D. Interim Period indicates the accounting period less than a year. Hence this option is incorrect.