Question 1

In interim reporting, the approach that treats each interim period independently of all other periods is the ______________________________________ view.

Accepted Answer

discrete

Question 2

In interim reporting, an interim period is considered a part of an annual period under the ___________________________view.

Accepted Answer

integral

Question 3

In interim reporting, APB Opinion No. 28 prescribes the use of the_____________ _____________________________ view for income taxes.

Accepted Answer

integral

Question 4

In interim reporting, APB Opinion No. 28 prescribes the use of the ______________ ______________________ view for extraordinary items.

Accepted Answer

The answer of In interim reporting, APB Opinion No. 28...

Question 5

In interim reporting, changes in accounting estimates are to be accounted for on a(n) ______________________________________ basis.

Accepted Answer

The answer of In interim reporting, changes in accounting estimates...

Question 6

In interim reporting, changes in accounting principles that are made in other than the first interim reporting quarter are to be accounted for ________________________________________.

Accepted Answer

The answer of In interim reporting, changes in accounting principles...

Question 7

In interim reporting, APB Opinion No. 28 essentially prescribes the use of the _______________________________ view for revenues.

Accepted Answer

The answer of In interim reporting, APB Opinion No. 28...

Question 8

Under APB Opinion No. 28, declines in market prices of inventory at interim dates that can be reasonably expected to be restored by the end of the annual period ___________________________________ be recognized at an interim date.

Accepted Answer

The answer of Under APB Opinion No. 28, declines in...

Question 9

Under APB Opinion No. 28, planned volume or capacity variances that are expected to be absorbed by the end of the annual period ______________________ ______________________ be deferred at interim reporting dates.

Accepted Answer

The answer of Under APB Opinion No. 28, planned volume...

Question 10

Under APB Opinion No. 28, certain costs and expenses (other than product costs) that clearly benefit more than one interim period ______________________________ be allocated among interim periods benefited.

Accepted Answer

The answer of Under APB Opinion No. 28, certain costs...

Question 11

Quarterly financial reporting is a requirement under GAAP as promulgated by the FASB and its predecessor organizations.

Accepted Answer

Quarterly financial reporting is not a requirement under GAAP (Generally Accepted Accounting Principles) as promulgated by the FASB (Financial Accounting Standards Board); it is a requirement by the SEC (Securities and Exchange Commission) for publicly traded companies.

Question 12

The inclusion of quarterly financial data in the annual report to stockholders is voluntary for publicly owned companies.

Accepted Answer

Publicly owned companies are required by the SEC to include quarterly financial data in their annual reports to ensure transparency and provide investors with consistent information.

Question 13

The objective of interim reporting is to use the same accounting principles and practices used in preparing annual financial statements.

Accepted Answer

The answer of The objective of interim reporting is to...

Question 14

Under the discrete view, an interim period is viewed as a self-contained segment of history that must stand on its own, just as an annual period must stand on its own.

Accepted Answer

Under the discrete view, each interim period is considered an independent reporting period, meaning it should be treated as if it were a separate entity, with its financial performance and position reported as if the period were the end of the business's fiscal year.

Question 15

Under the integral view, the function of accounting is deemed to be that of recording transactions and events as they occur.

Accepted Answer

The answer of Under the integral view, the function of...

Question 16

Under the discrete view, the period of time for which results of operations are being determined should not influence how such transactions and events should be reported.

Accepted Answer

Under the discrete view, the period of time (e.g., a fiscal quarter or year) is considered a separate reporting period, and transactions and events should be reported in the same manner regardless of the specific period in which they occur. This view treats each reporting period as distinct and independent from others.

Question 17

Under APB Opinion No. 28, accounting for revenues in interim periods is done using a discrete approach.

Accepted Answer

APB Opinion No. 28 advocates for the use of a discrete approach in accounting for revenues during interim periods, treating each interim period as a separate reporting period.

Question 18

Under APB Opinion No. 28, market declines at interim dates pertaining to inventory are to be allocated to interim periods based on an estimate of time expired, benefit received, or activity associated with the periods.

Accepted Answer

APB Opinion No. 28 states that market declines in inventory at interim dates should be recognized in the period in which they occur, not allocated to interim periods based on estimates.

Question 19

Under APB Opinion No. 28, unplanned capacity variances arising at an interim date should not be deferred at interim reporting dates.

Accepted Answer

APB Opinion No. 28 states that unplanned capacity variances should be recognized in the period in which they occur and not deferred to future periods, meaning they should not be deferred at interim reporting dates.

Question 20

Under APB Opinion No. 28, certain expenditures (other than product costs) that clearly benefit more than one interim period are required to be allocated among interim periods benefitted.

Accepted Answer

The answer of Under APB Opinion No. 28, certain expenditures...

Quiz 17: Interim Period Reporting