Which of the Following Is an Example of a Disclosure

question 103

Multiple Choice

Which of the following is an example of a disclosure of information NOT recognized 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:

Available Balance

The amount of funds in a checking or savings account that is accessible for immediate use, taking into account any pending transactions.

Net Collection Float

Net collection float refers to the difference in time between when a check is deposited into a bank account and when the funds are available for use, affecting a company's cash flow.

Net Float

The difference between checks written against and deposited in an account, which affects the balance available in the account.

Collection Float

The time period between when a payment is made by a customer and when the funds become available in the company's account.