According to APB Opinion No.22, the initial note to the financial statements should describe
A)the calculation of comprehensive income
B)the significant concentrations of credit risk
C)the significant accounting policies
D)the objectives of holding derivatives and the strategies for achieving them

Question

Quizplus · Accepted Answer

APB Opinion No.22 states that the initial note to the financial statements should describe the significant accounting policies of the company. This includes the methods and principles followed for recognition, measurement, and presentation of assets, liabilities, revenue, and expenses in the financial statements. The other options, such as the calculation of comprehensive income, significant concentrations of credit risk, and objectives/strategies of holding derivatives, may be disclosed in other notes or disclosures in the financial statements, but they do not fall under the description of significant accounting policies.