Final answer:
The first fiscal year for Ripa Co., which begins on August 1, 20Y5, will end on March 31, hence the first fiscal year occurs from August 1, 20Y5, to March 31, 20Y6, corresponding to option 1).
Step-by-step explanation:
The student's question pertains to identifying the span of the first fiscal year for Ripa Co., which adopts a fiscal year ending on March 31. Since Ripa Co.
begins operations on August 1, 20Y5, and its fiscal year ends on March 31, the first fiscal year will be shorter than a full 12 months.
The first fiscal year for Ripa Co. will start when the company begins operations and will end at the next occurrence of the company's fiscal year-end date, which is March 31.
Therefore, Ripa Co.'s first fiscal year will occur from August 1, 20Y5, to March 31, 20Y6, which corresponds to option 1).
It's important to note that while the fiscal year typically lasts 12 months, in the case of a new business or a change in the fiscal year-end, the initial or changed fiscal year may cover a different length of time.
The complete question is:content loaded
Ripa Co. adopts a fiscal year that ends March 31. It begins operations on August 1, 20Y5. When does the company's first fiscal year occur?
1) August 1 to March 31
2) March 31 to August 1
3) August 1 to July 31
4) July 31 to August 1