The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession that began in December 2007.
The basis for this decision was the length and strength of the recovery to date.
Companies prepare the balance sheet and the income statement periodically at the end of each accounting cycle.
While a balance sheet relates to a specific date, or a given point within an accounting cycle, an income statement is concerned about a particular period, or the time during an accounting cycle.
Additionally, immediately adjacent to the date must be a phrase explaining the meaning of that date such as "Best if Used By." [Top of Page] Are Dates for Food Safety or Quality?
These discounts are intended to speed payment and thereby provide liquidity to the firm. Some retailers (particularly small retailers with low margins) offer discounts to customers paying with cash, to avoid paying fees on credit card transactions.
Companies may carry out their accounting cycles on a yearly or quarterly basis.
The choosing of an accounting cycle determines both the date for the balance sheet and the period for the income statement.
When to report the balance sheet and how long to cover the income statement affect the balance sheet values and income statement amounts.
A balance sheet often states that it is prepared as of a specific date, referred to as the balance sheet date.