For what reason might retailers like Target select an accounting period that ends on or near the end of January?
A)The company originally started business operations on that date so it is required to use the date as fiscal year-end.
B)Business activity is in a slow period that is suited to the preparation of its financial statements at the end of the year.
C)The company's CPAs are attempting to spread out the workload.
D)The Internal Revenue Service requires merchandise companies to select such a date for their fiscal year.

Question

Quizplus · Accepted Answer

Retailers like Target may select an accounting period that ends on or near the end of January because the period after the holiday shopping season is generally a slow one for many retailers. This slow period may be ideal for preparing financial statements and other accounting tasks.

For What Reason Might Retailers Like Target Select an Accounting