Preparation of interim financial statements:
A)Makes the preparation of year-end financial statements unnecessary.
B)Requires the journalizing and posting of adjusting entries.
C)Requires the journalizing and posting of closing entries.
D)Is done monthly or quarterly or in-between the year-end financial statements.

Question

Quizplus · Accepted Answer

Interim financial statements are prepared during the period between year-end financial statements, such as monthly or quarterly. Adjusting and closing entries are not required for interim financial statements, as they only reflect the financial position and performance of the company for a shorter period of time. However, these statements may still require some adjustments for items such as prepaid expenses or unearned revenue.

Preparation of Interim Financial Statements