Bramble Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its stockholders and the Securities and Exchange Commission (SEC) at the end of the first quarter of the 2020–202 fiscal year. Bramble’s financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year.Sales revenue $56,500,000 Cost of goods sold 35,300,000 Variable selling expenses 880,000 Fixed selling expenses 2,730,000 Included in the fixed selling expenses was the single lump-sum payment of $1,815,000 for television advertisements for the entire year.Bramble Corporation must issue its quarterly financial statements in accordance with generally accepted accounting principles regarding interim financial reporting.(a1) Should Bramble report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period.

The report that contains all the financial information (monetary and non-monetary) of companies is known in financial reports. These financial reports are prepared according to accounting principles and standards and are audited by the auditors before its issue. According to the integral accounting approach, interim accounting helps the company in the completion of the accounting cycle and is an integral part of the financial report. The accrued revenue and expenses are recorded as deferred and realized over the years. Assuming that Bramble Corporation is using U.S. GAAP. According to this method, the expenses and net income from which the benefits are expected to be realized throughout the years are recorded as deferred expenses and income at the end of the interim period. Hence, Bramble Corporation should report operating results as if the quarter were an integral part of the annual reporting period following the integral approach.

Answered: Bramble Corporation, a publicly traded…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(a1)

Should Bramble report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period.

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