Accounting Fundamentals Certification (AFC) Practice Test

The correct choice communicates that the income statement summarizes the financial performance specifically for the month that ended on September 30. This format is standard in accounting as it clarifies the time frame of the financial activity reported. By stating "For the Month Ended September 30, 20--," it indicates that all transactions, revenues, and expenses recognized in this income statement pertain only to the month leading up to and including that date.

This precision is crucial for stakeholders looking to understand the company's performance during that specific time frame. It allows users of the financial statement to easily differentiate between different periods, which is important for analysis and decision-making.

The other options do not accurately reflect the monthly reporting period. For example, stating "For period ending" could imply a broader timeframe rather than confining to just the monthly reporting. Describing it as a "year" would be entirely inappropriate as the statement just covers one month. Lastly, indicating "For month started" suggests an ongoing process rather than a completed month, which does not accurately represent the completed nature of the income statement's reporting period.