The commitments and contingencies account listed on a balance sheet is meant to draw attention to the fact that required disclosures can be found in the notes to the financial statements.

Question

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The commitments and contingencies account is a disclosure account that indicates that further information can be found in the notes to the financial statements. Therefore, it is true that the purpose of this account is to draw attention to the required disclosures in the accompanying notes.

The Commitments and Contingencies Account Listed on a Balance Sheet