1. Discuss/explain the importance of periodic reporting and the time period principle.
2. What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?© BrainMass Inc. brainmass.com March 4, 2021, 9:32 pm ad1c9bdddf
1. Because different companies maintain different year-end dates (i.e., fiscal years), the only way to compare the performance of different companies is by using the same basic measuring unit. Therefore, to allow this comparison, companies report using standard time ...
This solution discusses the periodic reporting (i.e., time period) principle as well as the order in which financial statements are prepared.