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Asked Dec 16, 2019
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What is the fiscal year? Why might companies choose to use a fiscal year that is not a calendar year?

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Fiscal Year: It a period that company or government uses for accounting purposes or for preparing their financial statements and for financial reporting. Fiscal Year may or may not be same as calendar year. While considering ad discussing Budget fiscal year is ought to be preferred for the sake of convenience. Calendar Year The calendar year is a one year period starting from 1st January and ending at 31st December.

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Explain the reason why companies choose to use a fiscal ...

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Fiscal Year It a period that company or government uses for accounting purposes or for preparing their financial statements and for financial reporting. Fiscal Year may or may not be same as calendar year. While considering ad discussing Budget fiscal year is ought to be preferred for the sake of convenience. Calendar year is a one year period starting with 1st January and ending with 31st December. When companies use any other one year period with different starting and ending date of calendar year, then it is called fiscal year. Companies choose to use a fiscal year over calendar year due to some reasons given in the explanation part.

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