Which of the following observations is true of the discrete view of interim reporting?
A. One interim period would not bear the entire expense that benefits more than one interim period.
B. An interim period is viewed as an installment of an annual period.
C. Recognition and adjustment of certain income or expense items may be affected by judgments about the expected results of the entire year's operations.
D. Each interim period is considered as a basic accounting period to be evaluated as if it were an annual accounting period.
Answer: D
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