Question

A calendar year ends?

1) at the end of the natural business cycle.
2) one year from the date the business began operations.
3) on December 31 of each year.
4) on any day on the calendar the business decides is best for it.

Answer 1

A traditional calendar year ends on December 31, but businesses may choose a different fiscal year-end based on their operational needs and the natural business cycle.

Step-by-step explanation:

The question at hand asks about the end of a calendar year for business purposes. Traditionally, there are two primary functions of a calendar: tracking time over long spans and using natural time intervals such as days, months, and years. These units are based on the rotation of the Earth (day), the phases of the Moon (month), and the Earth's orbit around the Sun (year).

However, the end of a calendar year for a business can vary. While it is commonly understood that a calendar year concludes on December 31 of each year, in the world of business and accounting, a company may choose a different date to align with its operations' unique needs and the natural business cycle. This alternate end date is known as the company's fiscal year-end.

The federal budget in the United States, for instance, operates on a fiscal year that begins on October 1 and ends on September 30. This demonstrates the adaptability of year-end dates for various accounting and operational purposes. In conclusion, while the traditional calendar year ends on December 31, businesses may determine their own fiscal year-end based on what is most advantageous for their operations.