$1$

The discrete view of interim reporting

$$ 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

$$ Holds that expenses for interim periods are based on estimates of total annual expenses

$$ Holds that an interim period is an integral part of the annual reporting period

$$ Is required by US GAAP

$2$

Recognized subsequent events are:

$$ events that occur after the balance sheet and before the issuance of the financial statements which provide additional evidence about conditions that did not exist at the balance sheet date.

$$ events that occur after the balance sheet date and before the issuance of the financial statements which provide additional evidence about conditions that existed at the balance sheet date

$$ events that provide evidence about conditions that did not exist at the balance sheet date

$$ events that occur before the balance sheet date and before the issuance of the financial statements

$3$

According to the disclosure requirements outlined in Statement of Accounting Concepts No$.5,$ the following is an example of supplementary information that should be disclosed because it affects an area that is directly affected by existing FASB Standards

$$ A statement of cash flows

$$ Segment information

$$ Accounting policies

$$ Management discussion and analysis

$4$

The Securities and Exchange Commission$$s fraud rule prohibits trading on the basis of inside information of a business corporation$$s stock by

$$ All officers, directors, and stockholders

$$ Officers and directors

$$ Officers

$$ Officers, directors, and beneficial holders of $10$ percent of the corporation$$s stock

$5$

The management's discussion and analysis section an annual report:

$$ Covers liquidity, capital resources, and results of operations

$$ Covers product lines issues

$$ Must be audited

$$ Does not allow estimates

$6$

Which of the following should be disclosed in the Summary of Significant Accounting Policies?

$$ Maturity dates of long$-$term debt

$$ Composition of plant assets

$$ Pro forma effect of retroactive application of an accounting change

$$ Basis of consolidation

$7$

A reportable segment must all of the following tests except for:

$$ Revenue test

$$ Profit $($loss$)$

$$ asset test

$$ debt test

$8$

Which of the followig must be included in the Summary of Signficant Accounting Policies in the notes to the financial statements?

$$ summary of long$-$term debt outstanding

$$ method of inventory valuation

$$ adequacy of pension plan assets in relation to vested benefits

$$ the sale of a segment

$9$

For interim financial reporting, a company should:

$$ gains and losses should be deferred to present proper matching

$$ allocate revenue and expenses evenly over the quarters

$$ defer recogntion of revenue

$$ generally use the same accounting principles followed in preparing their nnual financial statements