When comparative financial statements are presented, the fourth standard of reporting, which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the
A) Periods presented plus the one preceding period.
B) Current period only.
C) Current period and those of the other periods presented.
D) Current and immediately preceding period only.

Question

Quizplus · Accepted Answer

The fourth standard of reporting, which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the current period and those of the other periods presented in comparative financial statements. This means that the financial statements should be read and analyzed together to fully understand the company's financial performance and position over time. The immediately preceding period is included in this analysis, but so are any other prior periods presented for comparison.

When Comparative Financial Statements Are Presented, the Fourth Standard of Reporting