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When a company accounting year-ends on a day that is other than end of the calendar year what is called in accounting?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 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?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 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.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered almost 3 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Shweta mane answered almost 3 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

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