Which of the Following Statements About Interim Reporting Is False

question 19

Multiple Choice

Which of the following statements about interim reporting is false?

• A)​If a company reports year-to-date financial information for the current year, it also must report the last twelve month-to-date information.
• B)​Under some circumstances, a company can restate the financial information of an earlier current-year quarter.
• C)​The gross profit method may be used for interim periods when taking a physical inventory would be too costly.
• D)​A company should allocate a portion of its estimated year-end inventory adjustment to each interim period.

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Definitions:

Cultivate

To develop or improve by education or training; to foster growth in skills, knowledge, or qualities.

Defense Mechanism

Defense Mechanism refers to psychological strategies brought into play by individuals unconsciously to protect themselves from anxiety or to face reality.

Rationalization

is the cognitive process of making seemingly acceptable explanations for behaviors that are actually irrational, often to justify personal decisions and actions.

Projection

A psychological defense mechanism where individuals attribute their own unwanted feelings, impulses, or thoughts to others.