Notes to the Financial Statements Include All of the Following

question 148

Multiple Choice

Notes to the financial statements include all of the following except

• A) descriptions of significant accounting policies used.
• B) explanations of uncertainties.
• C) quantifiable accounting information.
• D) statistics needed to understand the statements.

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Definitions:

GAAP

Generally Accepted Accounting Principles; a set of accounting standards and practices used to prepare financial statements in the U.S.

Service Contract

A service contract is a legally binding agreement between two parties where one agrees to provide a specified service to the other for a payment.

SEC

The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets and protects investors.

Revenue Recognition Criteria

The set of guidelines that determines the specific conditions under which revenue is recognized in the accounting period.