An accounting period that ends when operations are at a low ebb is:
A)a calendar year.
B)a fiscal year.
C)the natural business year.
D)an operating year.
E)None of the answers are correct.

Question

Quizplus · Accepted Answer

The natural business year is an accounting period that ends when operations are at a low ebb. It is usually determined by the cyclical nature of a business or industry, and may not necessarily coincide with a calendar or fiscal year. Thus, option C is the best choice in this case. Option A, a calendar year, is a period of 12 months beginning on January 1 and ending on December 31. Option B, a fiscal year, is a period of 12 months used for financial reporting and tax purposes, which may or may not align with the calendar year. Option D, an operating year, is not a commonly used term in accounting and finance, and is not a relevant choice in this context. Option E, None of the answers are correct, is incorrect as option C is a valid choice.

An Accounting Period That Ends When Operations Are at a Low