In practice, most companies use the discreet approach in preparing their internal interim financial statements. Which of the following costs is usually not included in the financial statements?
A)Insurance
B)Income taxes
C)Maintenance
D)Bonuses to employees

Question

Quizplus · Accepted Answer

Income taxes are often not included in internal interim financial statements using the discreet approach because the tax expense can be complex to estimate accurately on a shorter-term basis and is typically calculated on an annual basis.

In Practice, Most Companies Use the Discreet Approach in Preparing