The basic accounting period is one year and all organizations

The basic accounting period is one year and all organizations report on an annual basis. It is common for large companies to report on a semi-annual basis, and some even report monthly. Interim reporting has a cost, however.

You are working part time as an accounting clerk for Hughes Corporation. The company was private and prepared only annual for its shareholders. Hughes has gone public and now must report quarterly. Joshua Ferguson, your supervisor in the accounting department, is concerned about all the additional work that will be required to produce the quarterly statements.

Required

What does Ferguson mean when he talks about “additional work”?

 

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