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Asked by Joshua Gagen on Jun 06, 2024

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A difficulty can arise in preparing an interim report because

A) there is insufficient time for the staff to prepare the report
B) it is difficult to determine meaningful operating results for an interval of less than a year
C) a fiscal year involves twelve months and the annual report must report monthly totals
D) quarterly reporting is more valuable than an interim report

Interim Report

A financial statement covering a period of less than one fiscal year that provides updates on a company's performance and financial position between annual reports.

Operating Results

The outcome of a company's core business operations, indicating profitability or loss over a certain period.

Fiscal Year

A 12-month period used by governments and businesses for accounting purposes, which may or may not align with the calendar year.

  • Utilize GAAP protocols for the generation of interim financial statements and the recording of financial losses.
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Hunter MiggelbrinkJun 09, 2024
Final Answer :
B
Explanation :
Interim reports cover a period less than a year, which can make it difficult to determine meaningful operating results. This is because certain expenses or revenues may be seasonal or sporadic and may not be fully reflected in a short period. Additionally, there may be fluctuations in the market or industry that cannot be accurately captured in a short time frame.

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