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 in between the traditional,annual statement dates
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 monthly or quarterly in between the traditional annual statement dates to provide more current information about a company's financial performance. They are not required by Congress, do not necessarily require full disclosure about a business's operations, and do not require the use of the perpetual method for inventories. The conservatism principle is a concept used in accounting to ensure that uncertainties and risks are accounted for, but it does not prevent the preparation of interim statements.

Interim Statements