What is included in the interim financial statements?

Interim financial statements typically provide a snapshot of an organization's financial situation and performance over a portion of the fiscal year, rather than the complete year that is captured in annual financial statements. The key components of interim financial statements include the balance sheet, income statement, budget comparison, changes in fund balances, and often additional supporting documents like bank statements and reconciliations.

The balance sheet gives an overview of assets, liabilities, and equity, providing insight into the organization’s financial position at a specific moment in time. The income statement (or statement of revenues and expenses) outlines the income and expenditures during the period, illustrating operational performance. The budget comparison allows management and stakeholders to assess how actual results align with the budgeted figures, which is crucial for evaluating operational efficiency and fiscal discipline. Changes in fund balances detail the variation in the funds available to an organization, granting a perspective on its financial stability.

Including bank statements and reconciliations in interim financial statements helps reflect the organization's cash position accurately and ensures that cash records are consistent with bank records. This comprehensive picture aids stakeholders in making informed financial decisions.

While other answer choices may encompass some relevant components, they do not capture the broader necessity of bank statements and reconciliations, which provide crucial accuracy and insight into