Which of the Following Should Be Disclosed in a Summary

question 50

Multiple Choice

Which of the following should be disclosed in a Summary of Significant Accounting Policies?

• A) Depreciation method followed
• B) Types of executory contracts
• C) Claims of equity holders
• D) Amount for cumulative effect of change in accounting principle

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Definitions:

Total Cost

the aggregate of all costs, both fixed and variable, incurred in producing goods or services.

Static Budget

A budget based on a fixed set of assumptions and not adjusted for actual activity levels.

Guest-Days

A measure used in the hospitality industry to quantify the total number of days guest have stayed.

Total Fixed Cost

It encompasses all the expenses that do not change regardless of the business activity volume, such as rent and salaries.