Final answer:
The assertion that interim financial statements cannot be condensed is false. Interim financial statements can be and often are condensed, offering a summary of financial performance for part of the year to stakeholders.
Step-by-step explanation:
The statement 'Interim financial statements cannot be condensed' is false. Interim financial statements are reports for periods shorter than a fiscal year and are often condensed to summarize the company's financial status during a particular quarter or half-year. While they must still comply with generally accepted accounting principles (GAAP), these statements provide a snapshot that delivers key financial information without the detail found in annual financial statements.
Condensed interim financial statements can be helpful for stakeholders, such as investors and creditors, as they provide timely insights into a company's performance and financial position. They typically include condensed balance sheets, income statements, and cash flow statements, along with selective notes.