Which of the Following Is an Example of a Significant

question 54

Multiple Choice

Which of the following is an example of a significant accounting policy that would be explained in the notes to the financial statements?

• A) The description of all the individual items that comprise notes payable
• B) The disclosure of quarterly financial information
• C) The method used to estimate depreciation on a piece of equipment
• D) The disclosure of the uncertain, potential outcome of a lawsuit

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Definitions:

Labor Hours

The total number of hours worked by employees during a certain period, often used to measure productivity or calculate wage costs.

Gaming Consoles

Dedicated electronic systems designed to play video games, typically connecting to a display device such as a television or monitor.

Decision Variable

A variable in mathematical modeling or decision making that is subject to choice within a set of possible values.

Hybrid Models

Combines two or more different modeling techniques to gain the benefits of each, often used in forecasting and predictions.