A natural business year ends when most activities in an operating cycle have been substantially concluded.

Question

Quizplus · Accepted Answer

A natural business year is determined by the completion of the operating cycle, which varies by industry but generally includes the purchase of raw materials, production of goods or services, and sale of those goods or services to customers. When these activities have been substantially concluded, it is considered the end of the natural business year.

A Natural Business Year Ends When Most Activities in an Operating