• Users need timely information on a company’s financial statements in order to make decisions, therefore companies must prepare financial statements periodically.
• To prepare such statements, accountants divide company’s financial statements into time periods.
• These time periods are usually equal in length and are called accounting periods.
• An accounting period may be one month, one quarter, or one year.

FS are always for a specific period, called the accounting period

We’ve now gone through all the content for Fundamentals 1. We’ll do an exercise that uses everything we’ve refreshed so far. Before we do that, do you have questions on the content so far? Please post it in Q&A