A Fiscal Year

question 86

Multiple Choice

A fiscal year

• A) ordinarily begins on the first day of a month and ends on the last day of the following twelfth month
• B) for a business is determined by the federal government
• C) always begins on January 1 and ends on December 31 of the same year
• D) should end at the height of the business's annual operating cycle

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Definitions:

Dollar Amount

The value of an item or transaction expressed in U.S. dollars, a common measure for comparing financial value.

Federal Reserve Deposits

Reserves held by commercial banks at the Federal Reserve, which are used to meet reserve requirements and facilitate day-to-day banking operations.

Check Clearing

The process by which banks settle transactions made by checks, ensuring that the funds move from the check writer's account to the recipient's.

Fractional Reserve Banking

A system in which depository institutions held reserves that are less than the amount of total deposits.