To meet the needs of full disclosure, companies use supplemental information, including:
A)Parenthetical comments or modifying comments placed on the face of the financial statements.
B)Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation.
C)Supplemental financial statements that report more detailed information than is shown in the primary financial statements.
D)All of these are correct.

Question

Quizplus · Accepted Answer

All of these options are correct. Companies use a variety of supplemental information to provide full disclosure in their financial statements, including parenthetical comments, disclosure notes, and supplemental financial statements. These additional details offer more insight and clarification about the company's financial status, operations, and any potential risks or uncertainties.

To Meet the Needs of Full Disclosure, Companies Use Supplemental