Financial information about a transaction was included only in the notes to the financial statements.This information was:
A)recognised and disclosed by Frank Ltd
B)only recognised by Frank Ltd
C)only disclosed by Frank Ltd
D)recognised, realised and disclosed by Frank Ltd

Question

Quizplus · Accepted Answer

When financial information about a transaction is included only in the notes to the financial statements, it means that the information was disclosed but not recognized in the main financial statements. Recognition involves recording the transaction within the financial statements themselves (e.g., on the balance sheet or income statement), whereas disclosure involves providing additional detail or information in the notes accompanying the financial statements.

Financial Information About a Transaction Was Included Only in the Notes