BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a note describing the auditor’s opinion of the management’s past and future financial planning for the business
|
|
|
a note providing more detail about a specific item shown in the financial statements
|
|
|
a note describing the accounting rules applied in the financial statements
|
|
|
a note describing financial disclosures about items not appearing in the financial statements
|
Detailed explanation-1: -Components of an Annual Report Management’s discussion and analysis (MD&A) General corporate information or business profile. Operating and financing highlights. Financial statements.
Detailed explanation-2: -Annual reports typically include financial statements, such as balance sheets, income statements, and cash flow statements. In addition, there will often be graphs or charts included, helping break down the financials into easily readable information.
Detailed explanation-3: -Notes to the financial statements disclose the detailed assumptions made by accountants when preparing a company’s: income statement, balance sheet, statement of changes of financial position or statement of retained earnings. The notes are essential to fully understanding these documents.
Detailed explanation-4: -Trial balance is not part of financial statements.