In Considering Interim Financial Reporting, How Did the Accounting Principles

question 37

Multiple Choice

In considering interim financial reporting, how did the Accounting Principles Board conclude that each reporting should 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 so that estimates are unnecessary.
• C) As reporting for a basic accounting period.
• D) As reporting for an integral part of an annual period.

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Definitions:

Assignee

An individual or entity to whom rights or interests have been transferred by another.

Parol Evidence

A rule that prohibits the admission of oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.

Assignor

The party in a contract who transfers rights or interests to another, known as the assignee.

Obligee

A contractual party who agreed to receive something from the other party.