Interim statements:
A) Are required by the Congress.
B) Are necessary to achieve full disclosure about a business's operations.
C) Are usually monthly or quarterly statements prepared for periods of less than one year.
D) Require the use of the perpetual method for inventories.
E) Cannot be prepared if the company follows the conservatism principle.

Question

Quizplus · Accepted Answer

Interim statements are usually prepared for periods of less than one year and are used to provide timely information about a company's financial performance to its stakeholders. Typically, interim statements are prepared on a monthly or quarterly basis. While the Congress may require certain financial disclosures from companies, this is not specific to interim statements. The use of the perpetual method for inventories is not a requirement for interim statements, and following the conservatism principle does not preclude the preparation of interim statements.

Interim Statements