Supplementary Disclosures Required by GAAP That Help Explain Detail Behind

question 87

Multiple Choice

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

• A) Report of the Independent Accountants
• B) Notes to the Financial Statements
• C) Management's Discussion and Analysis
• D) Balance Sheet

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Definitions:

Maker

In financial terms, the party that creates or issues a promissory note, obligating themselves to pay a certain sum to a specified party.

Negotiable Instrument

A document in writing that confirms the payout of a designated amount of money, whether immediately upon demand or at a specific time, with the name of the person paying listed on it.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named or to the bearer.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law relating to business and commerce across states.