Question

The fiscal year selected by a company must always be adjusted to the calendar year?

1) True
2) False

Answer 1

A company's fiscal year does not have to align with the calendar year; it can start and end on any 12-month period chosen by the company.

Step-by-step explanation:

The statement that a company's fiscal year must always be adjusted to the calendar year is false. Companies may choose any 12-month period that suits their business needs for their fiscal year. For example, the federal government's fiscal year begins on October 1 and ends on September 30 the following year, which doesn't align with the calendar year.