Accounting period
Accounting period is the defined span of time a set of financial statements covers — typically one month, one quarter, or one year. Revenue, expenses, and profit figures only make sense relative to a period.
Also known asfiscal period · reporting period
See it move
A horizontal timeline spans a calendar year (or a fiscal year ending on another date), marking four key points: the period opens on 1 January, revenue and expenses accumulate during the year, the cut-off closes the period on 31 December, and financial statements are prepared after that closing date. Only income and expenditure that falls within this window is reported on the income statement.
Check yourself
Which statement best explains why the concept of an accounting period matters for measuring business performance?