When a fiscal year that starts and ends at the time the stock of merchandise is normally at its lowest level is selected, it is known as a(n)

Question

Quizplus · Accepted Answer

A fiscal year that starts and ends at the time when the stock of merchandise is normally at its lowest level is known as a natural business year. This ensures that the financial statements accurately reflect the company's normal operating cycle, making it easier to compare financial data over different periods. A calendar year is from January 1 to December 31, while a base year is a specific year used as a reference point for comparison in financial analysis. The accounting cycle is the process of recording, classifying, and summarizing financial transactions to prepare financial statements.

When a Fiscal Year That Starts and Ends at the Time