Which of the following describes monthly financial statements?

Monthly financial statements are characterized as interim reports. This term refers to financial statements that are prepared for a specific period shorter than a full financial year, typically on a monthly or quarterly basis. These interim statements provide management with a snapshot of the financial performance and position of an organization, allowing them to assess ongoing financial health and make timely decisions.

In the context of property management or community associations, interim financial reports are critical as they allow managers to track budget variances, manage cash flow, and make necessary adjustments in operations or financial strategies between annual audits. While audited statements represent a thorough examination of financials typically conducted annually, that does not apply to the monthly nature of these statements.