What defines a fiscal year for a business?

A. It is any period which consists of 12 consecutive months.
B. It is a 12-month period always ending on December 31.
C. It is any period which consists of 48 consecutive weeks.
D. It is a year in which financial statements are audited.



Answer :

Final answer:

A fiscal year in business is a 12-month financial reporting period, varying in alignment with the calendar year, often ending on December 31. Financial statements and audits are common practices at the conclusion of a fiscal year.


Explanation:

A fiscal year for a business is a 12-month period used for financial reporting and budgeting purposes. It can coincide with the calendar year or vary depending on the organization.

In the United States, the federal government's fiscal year runs from October 1 to September 30, but for many businesses, it aligns with the calendar year, starting on January 1 and ending on December 31.

Financial statements and audits are typically done at the end of a fiscal year to assess the financial health of the business.


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