An annual reporting period consisting of any twelve consecutive months is known as:
A) Fiscal year.
B) Calendar year.
C) Interim financial period.
D) Natural business year.
E) Seasonal year.

Question

Quizplus · Accepted Answer

A fiscal year is an annual reporting period that can start on any date as long as it covers a total of twelve consecutive months. It is commonly used by businesses and organizations to align their accounting and financial reporting with government regulations, tax laws, and seasonal fluctuations in their operations. The fiscal year may or may not coincide with the calendar year, which starts on January 1st and ends on December 31st. Therefore, option A is the most appropriate answer, and the other options do not accurately define an annual reporting period.

An Annual Reporting Period Consisting of Any Twelve Consecutive Months