Which of the following is not a proper use of notes?
A)To describe the nature and effect of a change in accounting principle,such as from FIFO to LIFO.
B)To indicate the basis for asset valuation.
C)To indicate the method of depreciation.
D)To correct an improper financial statement presentation.
E)To describe a firm's debt.

Question

Quizplus · Accepted Answer

Notes to financial statements are intended to provide additional information to users about the financial condition and performance of the entity, including accounting policies, asset valuations, and debt obligations. They are not meant to correct improper financial statement presentations; errors in the financial statements should be corrected by restating the affected financial statements.

Which of the Following Is Not a Proper Use of Notes