Gains and losses that arise in an interim period should be:
A) recognized in the interim period in which they arise.
B) recognized in the last quarter of the year in which they arise.
C) allocated equally among the remaining interim periods.
D) deferred and included only in the annual income statement.

Question

Quizplus · Accepted Answer

Gains and losses that arise in an interim period should be recognized in the interim period in which they occur to ensure timely and accurate reflection of financial performance, in accordance with generally accepted accounting principles (GAAP). This approach provides a more accurate and immediate view of a company's financial health and performance during the year.

Gains and Losses That Arise in an Interim Period Should