360 and not 365

[Lotfi]

Hello this is my first post here ^^
i'm a student from Algeria in my teacher always tells us that there's 360 accounting day in the year

he always askes us this question about where the other 5 went ? why it's 360 and not 365

i figured out this much( only 2 days out of 5 )
-1 january
-labor day

what about the other 3 days ?
^^

 

[Fidget]

He's referencing a "commercial" year where 12 months all have 30 days.

 

[Lotfi]

But Why 30 days ?

 

[Steve-LevelUp]

Many companies use this as a means to ensure that each period has the same number of days. Some use 30 days a month so that one month is identical to the prior month. Other companies use 4 weeks per period with 13 periods, this makes each period comparable if there are very strong patterns in weekly activity justifying.

I have never heard of 30 days being a firm 'accounting days' but some companies to take advantage of this, although I have never worked for a company like this.

 

[Drmdcpa]

He may be simplifying things for academic purposes.

There are 365.25 actual days in a calendar year, 360 days in a commercial year, 250 days in a work year; at least in the US where vacations are not as plentiful.

Calculating compound interest is 365 days. But in academics it could be rounded to 360.