For what reason would retailers like The Gap select an accounting period that ends on or near the end of Janua?
A. The company originally started business operations on that date.
B. Business activity has reached a slow period that is suited to the preparation of its financial statements at the end of the year.
C. The company's CPAs are attempting to spread out the workload.
D.The Internal Revenue Service requires merchandise companies to select such a date for their fiscal year.
- DarrelLv 49 years agoFavorite Answer
B would be the most common.
- Don GLv 79 years ago
Most retailers use January 31 as their fiscal year end because Inventory is at its lowest level, following after-Christmas sales. Thus the cost of its annual physical inventory will also be at a minimum, compared to any other month of the year.