Asked by Tatayana Williams on Jul 29, 2024
Verified
Define and discuss a calendar year, accounting period, and fiscal year.
Fiscal Year
A one-year period chosen by a business for financial reporting and taxation purposes, which may not coincide with the calendar year.
Accounting Period
A specific time period for which financial information is reported, commonly a year or a quarter.
Calendar Year
A period of time that starts on January 1 and ends on December 31, used for accounting and official purposes.
- Define and differentiate between calendar year, accounting period, and fiscal year.
Verified Answer
KN
Kashish NooriAug 02, 2024
Final Answer :
A calendar year runs from January 1 to December 31. An accounting period is the period of time for which an income statement is prepared. It could be a day, a month, a quarter of the year, or a year. A fiscal year is any 12-month period a business chooses for its accounting year. It could run, for example, from February 1 to January 31 or from October 1 to September 30.
Learning Objectives
- Define and differentiate between calendar year, accounting period, and fiscal year.