Question

The statutory year has how many days for the purpose of calculating prorated expenses?

a) 365 days
b) 360 days
c) 300 days
d) 250 days

Answer 1

The statutory year for prorated expenses is typically 360 days, which simplifies financial calculations. In actuality, there are approximately 365 days in a calendar year, with adjustments every four years for leap years.

Step-by-step explanation:

The statutory year for the purpose of calculating prorated expenses is typically 360 days. This simplification is used in some business and finance calculations, such as the calculation of interest on loans. It divides the year into twelve 30-day months, which makes the calculation easier without significantly affecting the accuracy of the result.

To determine the number of seconds in one year, if we are using the actual calendar year, we would consider there to be approximately 365 days in a calendar year. For precision, one might consider the exact duration, which includes leap years.