Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?
A) Report of the Independent Accountants
B) Notes to the Financial Statements
C) Management's Discussion and Analysis
D) Balance Sheet

Question

Quizplus · Accepted Answer

The notes to the financial statements provide additional information and disclosures required by GAAP, including details behind the accounting treatment of certain items in the financial statements. The report of the independent accountants provides the auditor's opinion on the financial statements, management's discussion and analysis provides a narrative explanation of the company's financial performance and future prospects, and the balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.

Supplementary Disclosures Required by GAAP That Help Explain Detail Behind