Notes to financial statements should not be used to
A) describe the nature and effect of a change in accounting principles.
B) identify substantial differences between book and tax income.
C) correct an improper financial statement presentation.
D) indicate basis for asset valuation.

Question

Quizplus · Accepted Answer

Notes to financial statements are meant to provide additional information and clarification on the figures presented in the financial statements, not to correct improper presentations. Corrections should be made directly in the financial statements themselves.

Notes to Financial Statements Should Not Be Used to