Choose the correct. In considering interim financial reporting, how does current U.S. GAAP require that such reporting be viewed?a. As a special type of reporting that need not follow generally accepted accounting principles.b. As useful only if activity is evenly spread throughout the year making estimates unnecessary.c. As reporting for a basic accounting period.d. As reporting for an integral part of an annual period.

Choose the correct. In considering interim financial reporting, how does current U.S. GAAP require that such reporting be viewed?a. As a special type of reporting that need not follow generally accepted accounting principles.b. As useful only if activity is evenly spread throughout the year making estimates unnecessary.c. As reporting for a basic accounting period.d. As reporting for an integral part of an annual period.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 45RSCQ

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In considering interim financial reporting, how does current U.S. GAAP require that such reporting be viewed?a. As a special type of reporting that need not follow generally accepted accounting principles.b. As useful only if activity is evenly spread throughout the year making estimates unnecessary.c. As reporting for a basic accounting period.d. As reporting for an integral part of an annual period.
Which of the following best describes the proper accounting for interim financial reports? a. The interim period is viewed as an integral part of the annual accounting period. b. The interim period is viewed as a distinct, independent accounting period. c. Interim net income should be determined by using the same principles as those for the annual accounting period. d. Net income should be computed on the cash basis except for sales, cost of goods sold, and depreciation.
The FASB, GASB, and FASAB all focus their standards on both internal and external financial reporting. True or False Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will not be required to assume the burden for services previously provided. True or False
Using IFRS, how should prior period errors that are discovered in a subsequent reporting period be recognized in the financial statements? a. As an adjustment to beginning retained earnings for the reporting period in which the error was discovered. b. As a note in the financial statements that the error was previously made but has since been corrected. c. In the current period if it’s not considered practicable to report it retrospectively. d. In the statement of comprehensive income.
Which statement is true regarding interim financial statements? interim financial statements must be presented with the most recent annual financial statements if interim financial statements are presented, only a statement of financial position and a statement of comprehensive income are required interim financial statements are required if interim financial statements are presented, four basic financial statements are required
1. Which one among the following statements is not a characteristic of the integral view of presenting interim financial statements? a. It is the more acceptable view. b.Each interim period is recognized as a separate accounting period, regardless of the length of time involved. c. Each interim period is a part of the annual period. d.The revenues and expenses for the annual period are allocated among interim periods 2. What is correct concerning the 75% overall size test for operating segments? a.The total external and internal revenue of all reportable segments is 75% or more of the entity’s external revenue. b.The total external revenue of all reportable segments is 75% or more of the entity’s external and internal revenue. c. The total external revenue of all reportable segments is 75% or more of the entity’s external revenue. d. The total internal revenue of all reportable segments is 75% or more of the entity’s internal revenue. 3. If an entity prepares interim financial…
For each of the following situations, indicate whether you agree or disagree with the financial reporting practiceemployed and state the accounting concept that is applied (if you agree) or violated (if you disagree).1. Wagner Corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasingpower of the dollar.
Which of the following statement is correct regarding accounting changes that result in financial statements that are effect the statements of a different reporting entity? a.The financial statements of all prior periods presented are adjusted retrospectively. b.No restatements or adjustments are required if the changes involve the cost r equity methods of accounting for investments. c.Cumulative-effect adjustments should be reported as a separate item in the financial statements pertaining to the year of the change. d.No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.
true or false? Gains and losses are allocated over the interim period in the preparation of interim financial reports.
Which of the following statements about a change in accounting estimate is not true? A. A change in accounting estimate can only be made when it is required to comply with an accounting standard or interpretation. B. Changes in accounting estimates result from new information or new developments. C. The effects of a change in accounting estimate should be applied prospectively. D. A change in estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset.
The minimum information to disclose in interim reports includes sales, income taxes, net income, earnings per share, seasonal revenues and expenses, and significant changes in financial position. Publication of balance sheet and cash flow information in interim reports is not required. However, if this information is not included, any significant changes since the last period in cash and cash equivalents, net working capital, long-term liabilities, and stockholders’ equity must be disclosed.
After the end of the reporting period, a contingency comes into existence. Under what circumstances, if any, should the contingency be reported in the financial statements for the period ended?