Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 17

For the following questions, circle the best response.

The explanatory notes to the financial statements contained in the “financial review” section of the annual report include descriptions of all of the following except

a. accounting changes.

b. employee productivity statistics.

c. events subsequent to the balance sheet date.

d. contingencies and commitments.

e. segment information.

Step 1 of 6

Explanatory statements to the financial statements

Explanatory notes to the financial statements are placed immediately after the financial statements. It contains all the detailed information financial statement and its related descriptions, accounting policies followed in the presentation of financial statements.