A fiscal year, or accounting period, is a specific timeframe used by governments and businesses for accounting purposes to compare financial results and statements.
An exercise can be in one of two states:
- Open: During an open exercise, entries can be made or modified, reflecting the ongoing transactions and adjustments within the given fiscal year.
- Closed: Once an exercise is closed, the entries are finalized, and no further modifications to the accounting records for that fiscal year are permitted.