Final answer:
The GAAP used in the most recent annual report should indeed be applied to interim financial statements of the current year, ensuring consistency and comparability across financial statements.
Step-by-step explanation:
The statement that GAAP used in the most recent annual report should be applied to interim financial statements of the current year is True. Generally Accepted Accounting Principles (GAAP) provide a framework for ensuring consistency, reliability, and comparability of financial statements. When a company prepares its interim financial statements, it should continue to apply the same accounting principles and methods that were used for the last completed fiscal year. This approach helps users of the financial reports to make accurate comparisons and evaluate trends within the same fiscal year.