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Answer Posted / suresh babu
A 12-month period over which a company budgets its spending.
A fiscal year does not always begin in January and end in
December; it may run over any period of 12 months. The
fiscal year is referred to by the date in which it ends. For
example, if a company's fiscal year ends October 31, 2006,
then everything between November 1, 2005 and October 31,
2006 would be referred to as FY 2006. Not using the actual
calendar year gives many companies an advantage, allowing
them to close their books at a time which is most convenient
for them.
| Is This Answer Correct ? | 5 Yes | 3 No |
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