Notes to Financial Statements

question 50

Essay

Notes to financial statements
An article in Dun's Review made the following comments: "At least every other year, businesses should print the notes in big type and the financial figures in smaller ones."
Instructions
a) Are notes considered part of the financial statements and what basic purpose do they serve?
b) What are the general types of notes?

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Definitions:

Social Networks

Structures made up of individuals or organizations, called "nodes," which are connected by one or more specific types of interdependency, such as friendships, kinships, common interest, financial exchange, or relationships of beliefs.

Productivity

Refers to the amount of goods or services produced for every hour worked.

Bureaucratic Ritualism

Involves bureaucrats getting so preoccupied with rules and regulations that they make it difficult for the organization to fulfill its goals.

Dehumanization

Occurs when bureaucracies treat clients as standard cases and personnel as cogs in a giant machine. This treatment frustrates clients and lowers worker morale.