For a service firm, the choice of reporting date (date on which the books are ‘closed’ and the statement of financial position or balance sheet, income statement and statement of cash flows are established) is based largely on:

(a) Discretionary choice by senior management

(b) Tax constraints

(c) Time when customer demand is at its lowest

(d) The timing of the major vacation period for most of the personnel and staff

(e) The time the unpaid customer bills are generally at their lowest balance of the year

(f) The availability of time for the accountants AppendixLO1