What is the correct statement regarding interim financial statements out of the options provided?
The statement that is NOT true about interim financial statements is: Statement C - Interim financial statements are not issued by all publicly held companies.
Interim Financial Statements
Interim financial statements are reports that provide financial information for periods of less than one year. They are used to provide timely and relevant information to investors and other stakeholders between the annual financial statements. Interim financial statements are prepared using Generally Accepted Accounting Principles (GAAP) to ensure consistency and comparability.
One statement that is NOT true about interim financial statements is:
False Statement
Statement C: Interim financial statements are not issued by all publicly held companies.
This statement is false because interim financial statements are indeed issued by all publicly held companies. These statements provide transparency and allow investors to make informed decisions. They provide valuable insights into the company's financial performance and help stakeholders assess its current financial position. Each interim period is viewed as an integral part of the annual period, allowing for analysis of trends and performance over time. Interim financial statements are an important tool for financial analysis and decision-making.