The Discrete View of Interim Reporting

question 47

Multiple Choice

The discrete view of interim reporting

• A) Holds that an interim period is a separate accounting period; thus, revenues and expenses should be treated as though they occurred only in one period.
• B) Holds that revenues and expenses should be allocated to the various interim periods.
• C) Holds that revenues and expenses should be reported as they occur.
• D) Holds that an interim period is an integral part of the annual reporting period.

---

Definitions:

ACME Corporation

A fictional company commonly used in cartoons and comics as an example of a generic, large corporation.

Mental Accounting

The tendency of individuals to segregate their money into separate accounts based on subjective criteria, affecting their spending and investment decisions.

Overpriced Warranty

A warranty agreement that is considered excessively costly relative to the coverage or protection it offers.

High-Interest Credit Card Debt

A debt incurred through credit card spending that carries a high rate of interest, often leading to significant financial strain.