As used in accounting, the "Notes to the Financial Statements" should be:
A)Listed with the liabilities on the balance sheet
B)Omitted at the option of the company
C)Included as an integral part of the financial statements
D)Reported as expenses on the Income Statement

Question

Quizplus · Accepted Answer

The "Notes to the Financial Statements" are an integral part of the financial statements and are included as additional information that provides details about the accounting policies, assumptions, and other important information that cannot be disclosed on the face of the financial statements. This information is important for investors and other users of the financial statements to understand the underlying transactions and events that have led to the reported numbers. Therefore, the notes should always be included as part of the financial statements.

As Used in Accounting, the "Notes to the Financial Statements