Which term describes an accounting period that begins and ends in months other than the calendar year?

• A. calendar year
• B. accounting period
• C. fiscal year
• D. January 1 to December 31

Answer: (C)

A fiscal year is a 12-month accounting period used for financial reporting that can start in any month, not necessarily January. This fits the description because it begins in a month other than the calendar year’s start and ends in a month that isn’t fixed to January or December. Calendar year, by contrast, runs from January 1 to December 31, and the term accounting period is a broad label for any span used for reporting (monthly, quarterly, or yearly). A common example of a fiscal year is July 1 to June 30, which reflects a business cycle or tax planning needs rather than the calendar year.