Which term describes an accounting period that begins and ends in months other than the calendar year?

Which term describes an accounting period that begins and ends in months other than the calendar year?

• A. calendar year
• B. accounting period
• C. fiscal year
• D. January 1 to December 31

Answer: (C)

A fiscal year is a 12-month accounting period used for financial reporting that can start in any month, not necessarily January. This fits the description because it begins in a month other than the calendar year’s start and ends in a month that isn’t fixed to January or December. Calendar year, by contrast, runs from January 1 to December 31, and the term accounting period is a broad label for any span used for reporting (monthly, quarterly, or yearly). A common example of a fiscal year is July 1 to June 30, which reflects a business cycle or tax planning needs rather than the calendar year.

A fiscal year is a 12-month accounting period used for financial reporting that can start in any month, not necessarily January. This fits the description because it begins in a month other than the calendar year’s start and ends in a month that isn’t fixed to January or December. Calendar year, by contrast, runs from January 1 to December 31, and the term accounting period is a broad label for any span used for reporting (monthly, quarterly, or yearly). A common example of a fiscal year is July 1 to June 30, which reflects a business cycle or tax planning needs rather than the calendar year.