BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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accounting rules applied in the company’s financial statements
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additional detail supporting numbers reported in the company’s financial statements
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relevant financial information not presented in the company’s financial statements
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all of the above would be found in the notes to the financial statements
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Detailed explanation-1: -Direct information is not the type of note found in a set of financial statements. Explanation: The explanatory notes or any kind of information is not found in the ‘financial statements’ or ‘account statements’.
Detailed explanation-2: -Notes to financial statements 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.
Detailed explanation-3: -Answer: Selling price is a type of information which is not found in the financial statement.
Detailed explanation-4: -These notes (or footnotes) inform of important accounting policies, company’s commitments, breakdown of sales, breakdown of purchases, details of assets and liabilities, potential profits and losses, etc.