Commercial Year
Categories: Metrics, Accounting
Consumers buy things 24 hours a day, 365 days per year. That creates a lot of inventory tracking and accounting. It means things are constantly coming and going. And every month has a different number of days that can end up making life exceeding hard for CPAs dealing with the mathematically illiterate.
So companies operate on a completely different calendar known as a “commercial year.” Since months have different numbers of days, using this adjusted schedule allows business operators to better manage inventory, compare monthly expenses, and streamline processes.
The idea is simple: For accounting purposes, a business operates of 12 months of 30 days. What happens to the other five days of the calendar? Uh...we can’t answer everything for you.
And don’t get us started on Leap Day. Go ask Siri. She knows everything.
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Finance: What are a 10K and 10Q?57 Views
finance a la shmoop what are 10K and 10Q filings well as the pros say 10Q
very much yeah you know we had to go there sorry well they're just filings a [Girl filing her fingernails]
different kind of filings legal filings papers or data
well the 10K is the annual report and the 10Q is the quarterly report their
note the Q in there yeah very clever naming their people well we have no idea
why the K is there like shouldn't it have been a 10A fling equals annual
anyway the filings contain the key elements that report to shareholders the [Man giving presentation to shareholders]
progress or lack thereof that the company has made in the period it's
reporting and these apply to public companies people privates don't
necessarily file... well the K the Q have to contain an updated income statement [Income statement, balance sheet and cash flow statement appear]
balance sheet and cash flow statement along with tons of notes on whatever
business metrics the company regularly reports the number of people made sick
by the lemonade the number a coal miner Barbies sold the number of Disney cruise
passengers infected with Legionnaires disease and so on and if you're the CEO [Person puking off the edge of a cruise ship]
or CFO of the company and you don't get your filings in on time well you'll be
doing a different kind of filing so yeah 10K, 10Q they're really important
don't ignore them...