Question

Federal law requires that accounting periods for businesses be recorded quarterly. True False

Answer 1

False. Federal law does not require that businesses record their accounting periods quarterly. While many businesses choose to report quarterly for financial reasons or due to the requirements of certain regulatory agencies (like publicly traded companies for SEC filings), accounting periods can be determined based on the business's needs and can be monthly, quarterly, or annually. The choice of accounting period often depends on the nature of the business and its financial reporting requirements.