kruthika
asked almost 4 years ago
Hi I want to know, When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?
acharya
answered over 3 years ago
Hi, The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
veeru
answered over 3 years ago
The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
CA Sandeep Bohra
answered over 3 years ago
**DEFINITION of 'Fiscal Year-End'** The completion of a one-year, or 12-month, accounting period. A firm's fiscal year-end does not necessarily need to fall on December 31, and can actually fall on any day throughout the year. **BREAKING DOWN 'Fiscal Year-End'** The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
Anil
answered almost 4 years ago
Loading the player... DEFINITION of 'Fiscal Year-End' The completion of a one-year, or 12-month, accounting period. A firm's fiscal year-end does not necessarily need to fall on December 31, and can actually fall on any day throughout the year. BREAKING DOWN 'Fiscal Year-End' The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
Shweta mane
answered almost 4 years ago
In Accounting, if the accounting year ends on a day other than 31st December I.e the end of calendar year , it's known as Fiscal Year
