The term “accounting period” is used to refer to the

The term “accounting period” is used to refer to the 

Answer Details

The term "accounting period" is used to refer to the time span, usually one year, covered by the financial statement. An accounting period is a period of time for which a company prepares its financial statements and reports its financial performance. In general, the accounting period is usually one year, but it can be any period of time that the company chooses. During the accounting period, a company records all of its financial transactions and keeps track of its income, expenses, assets, and liabilities. At the end of the accounting period, the company prepares its financial statements, which include the income statement, balance sheet, and cash flow statement. The financial statements provide a summary of the company's financial performance for the accounting period, showing its revenues, expenses, net income, assets, and liabilities. They provide important information for investors, creditors, and other stakeholders to make informed decisions about the company's financial health and prospects. Therefore, the correct answer is the time span, usually one year, covered by the financial statement.