Which of the following represents one of the purposes of the notes to financial statements?
A)To provide a place for management to justify questionable items in the statements
B)To provide comparative ratios for the company's financial data
C)To provide the CPA's opinion of the fairness of the financial statements
D)To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position

Question

Quizplus · Accepted Answer

The notes to financial statements are included to satisfy the need for full disclosure of all the facts relevant to a company's financial results and position. They provide details and explanations about specific items on the financial statements, such as accounting policies, contingencies, and other significant events or transactions that are not presented directly in the financial statements. They also provide additional information to help users of the financial statements better understand the company's financial performance and position. Options A, B, and C are incorrect because they are not one of the purposes of the notes to financial statements.

Which of the Following Represents One of the Purposes of the Notes