When a company is determining their year end:
A) it must be December 31 if they are a retail store.
B) a calendar year can end at the end of any month.
C) they may want to adopt a fiscal year that ends at the low point of their operations.
D) a fiscal year end ends on December 31.

Question

Quizplus · Accepted Answer

While a company can choose to end their fiscal year on December 31 (option D), it is not required. Option A is incorrect as the year-end does not have to be December 31 for all types of businesses. Option B is incorrect as there are certain rules and regulations regarding the ending of fiscal years. Option C is the best choice as businesses may benefit from choosing a fiscal year-end that aligns with their operations or financial cycles.

When a Company Is Determining Their Year End