BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
a. The notes must to financial statements present information about the basis of preparation of the financial statements and the specific accounting policies usedb. The notes disclose any information required by IFRSs that is not presented elsewhere in the financial statements andc. The notes provide additional information that is not presented elsewhere in the financial statements but is relevant to an understanding of any of them
A
All statements are true
B
All statements are false
C
Only statement a is true
D
Only statement b is true
Explanation: 

Detailed explanation-1: -The notes to the financial statements communicate information necessary for a fair presentation of financial position and results of operations that is not readily apparent from, or not included in, the financial statements themselves.

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. The notes are essential to fully understanding these documents.

Detailed explanation-3: -In order to meet their objectives, financial statements are prepared on the accrual basis of accounting.

Detailed explanation-4: -GAAP is a set of procedures and guidelines used by companies to prepare their financial statements and other accounting disclosures. The standards are prepared by the Financial Accounting Standards Board (FASB), which is an independent non-profit organization.

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