There Is a Section in Every Annual Report That Detail

question 31

Essay

There is a section in every annual report that detail the accounting policies used by a company.Explain why this is important to users and what some of the limitations are.

---

Definitions:

Affirmative Defense

A defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged act.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract, without lawful excuse.

Forum Selection Clause

A contractual provision that determines the location and jurisdiction where disputes arising under the contract will be resolved.

Confession of Judgment

A legal agreement where a debtor agrees that a creditor may obtain a judgment against them without a trial.