Which of the following best describes the additional information that companies use to meet the requirements of full disclosure in financial statements?
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 schedules and tables that report more detailed information than is shown in the primary financial statements.
D) Comments on the face of the financial statements, and schedules, tables, and narrative disclosures in notes to the financial statements.

Question

Quizplus · Accepted Answer

Full disclosure in financial statements refers to providing all relevant information and additional details to ensure that the users of financial statements are not misled. The additional information that companies use to meet the requirements of full disclosure includes comments on the face of the financial statements, as well as schedules, tables, and narrative disclosures in notes to the financial statements. This helps to provide a full and complete picture of the company's financial health and operations.

Which of the Following Best Describes the Additional Information That