Help please... Accounting?

Question

The fiscal year selected by companies __________.

a) is the same as the calendar year

b)begins with the first day of the month and ends on the last day of the twelfth month

c) must always begin on January 1

d)will change each year

I chose B beause it sounds similar to the info in my book but im having a blonde moment... can anyone help.

Answer 1

B is the right answer.

Company's select their fiscal year.  The IRS has some say in when a company's fiscal year ends, which requires a fiscal year to end within a certain period of time after the company's busy (high revenue) season.

A fiscal year is a 12 month period.  It can be 1/1/x0 to 12/31/x0.  But it can also be 4/1/x0 to 3/31/x1, or 7/1/x0 to 6/30/x1.

Answer 2

The answer is B

Answer 3

You are correct.  It is the 12 month period that a business choses for the basis of its annual accounting.