Custom Fiscal Years

A.

The statement "Custom Fiscal years are for companies that break down their fiscal years, quarters, and weeks in to custom fiscal periods based on their financial planning requirements" is generally true.

Fiscal year is the accounting period for a company and usually aligns with the calendar year, but companies can also define their own fiscal year based on their financial planning requirements. Custom fiscal years allow companies to define their own fiscal year start and end dates, as well as how the fiscal year is divided into quarters and months.

For example, a company may choose to have a fiscal year that starts in July and ends in June, rather than the standard January to December. Additionally, they may choose to have different lengths for each quarter or have custom fiscal periods that do not align with standard calendar months. This flexibility can be particularly useful for companies that have seasonal fluctuations or irregular revenue streams.

Custom fiscal years can be configured in Salesforce, the platform that the Essentials for New Lightning Experience Administrators exam is focused on. Salesforce allows administrators to define custom fiscal years, quarters, and weeks, which can be used for reporting and forecasting purposes. The ability to configure custom fiscal years is an important feature for financial planning and management in Salesforce, making the statement generally true.