72.

Which of the following statements about the philosophy underlying interim financial reporting is true?

Select one:

A. Companies are allowed to adjust their revenue and expense recognition policy in order to achieve favorable year-over-year comparisons as long as sales and net income for the year as a whole would not be affected.

B. Each interim period is accounted for independently using customary revenue and expense recognition policies.

C. Each interim period should be viewed primarily as an integral part of an annual period.

D. None of the above are true.

70.

Which of the following best describes the motivation for and/or argument against segment reporting?

Select one:

A. Users argue for increased disclosures so that they may better understand the drivers of a company's financial performance.

B. Companies have argued against increased disclosures because they feel it will hurt their competitive position.

C. Users of financial statements (the analyst community, in particular) argue that it is not sufficient merely to know that a company as a whole is profitable and is generating sufficient cash flow.

D. All of the above