A difficulty can arise in preparing an interim report because
A)there is insufficient time for the staff to prepare the report
B)it is difficult to determine meaningful operating results for an interval of less than a year
C)a fiscal year involves twelve months and the annual report must report monthly totals
D)quarterly reporting is more valuable than an interim report

Question

Quizplus · Accepted Answer

Interim reports cover a period less than a year, which can make it difficult to determine meaningful operating results. This is because certain expenses or revenues may be seasonal or sporadic and may not be fully reflected in a short period. Additionally, there may be fluctuations in the market or industry that cannot be accurately captured in a short time frame.

A Difficulty Can Arise in Preparing an Interim Report Because