Interim financial reports:
A)are not required by SEC.
B)are as reliable as annual reports.
C)require allocation of certain discretionary costs across interim periods.
D)normally use FIFO inventory reporting, regardless of method used for annual reports.

Question

Quizplus · Accepted Answer

Interim financial reports require the allocation of certain discretionary costs across interim periods. Options A, B, and D are incorrect statements as interim financial reports are required by SEC, they are not as reliable as annual reports, and they use the same inventory reporting method used for annual reports.

Interim Financial Reports