7. S1: The publication of interim financial reports is on a quarterly basis.S2: For financial statements at interim date, inventories shall be measured using the gross profit method because conducing inventory count is not required. * A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true
7. S1: The publication of interim financial reports is on a quarterly basis.S2: For financial statements at interim date, inventories shall be measured using the gross profit method because conducing inventory count is not required. * A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7. S1: The publication of interim financial reports is on a quarterly basis.S2: For
financial statements at interim date, inventories shall be measured using the
gross profit method because conducing inventory count is not required. *
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true
8. The following statements are incorrect about interim reporting, except
A. A complete set of financial statements must be presented for an interim period.
B. A condensed set of financial statements must be presented for an interim period.
C. Interim reports require the preparation of only a statement of financial position and
statement of comprehensive income.
D. Preparation of interim reports generally requires a greater use of estimation than
annual financial reports.
E. None of them
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