Which term refers to a 12-month fiscal period?

Which term refers to a 12-month fiscal period?

• A. Fiscal year
• B. Fiscal period
• C. Calendar year
• D. Banking year

Answer: (A)

A fiscal year is a 12-month accounting period a business uses for its annual financial reporting and budgeting. It doesn’t have to start in January; a company can choose any 12-month span, such as July 1 to June 30. This differs from a calendar year, which runs January 1 to December 31 and is tied to the calendar. A fiscal period can be any length used in accounting (monthly, quarterly, or yearly), so it isn’t necessarily 12 months. A banking year isn’t a standard designation for a 12-month reporting period. So the term that specifically refers to a 12-month fiscal period is a fiscal year.

A fiscal year is a 12-month accounting period a business uses for its annual financial reporting and budgeting. It doesn’t have to start in January; a company can choose any 12-month span, such as July 1 to June 30. This differs from a calendar year, which runs January 1 to December 31 and is tied to the calendar. A fiscal period can be any length used in accounting (monthly, quarterly, or yearly), so it isn’t necessarily 12 months. A banking year isn’t a standard designation for a 12-month reporting period. So the term that specifically refers to a 12-month fiscal period is a fiscal year.