Each of the following must be disclosed in the financial statements, except:
A) The total amounts of long-term debt maturing in each of the next five years.
B) The company's debt ratio and interest coverage ratio for the current year.
C) Loss contingencies, when a reasonable possibility exists that a material loss has been incurred.
D) The fair value of long-term liabilities, when this value is significantly different from the amount shown in the balance sheet.

Question

Quizplus · Accepted Answer

While the company's debt ratio and interest coverage ratio may be important for investors and creditors to know, they do not fall under the category of items that must be disclosed in the financial statements according to accounting standards. The other options listed (A, C, and D) are required disclosures.

Each of the Following Must Be Disclosed in the Financial