The 12-month period that ends when a company's activities are at their lowest point is called the
A) Fiscal year
B) Calendar year
C) Natural business year
D) Accounting period
E) Interim period

Question

Quizplus · Accepted Answer

The natural business year is the 12-month period that ends when a company's activities are at their lowest point, such as the end of the agricultural season or the completion of a construction project. This is different from a fiscal year, which is a 12-month period chosen by the company for financial and tax reporting purposes, or a calendar year, which is January 1 to December 31. An accounting period is a specific timeframe for financial reporting, and an interim period is a shorter period of time between the company's reporting periods.

The 12-Month Period That Ends When a Company's Activities Are