Which of the Following Is NOT One of the Four

question 70

Multiple Choice

Which of the following is NOT one of the four general types of financial statement notes?

• A) Summary of significant accounting policies
• B) Additional information about the summary totals found in the financial statements
• C) Disclosure of important information that is not recognized in the financial statements
• D) Supplementary information required by the Internal Revenue Service

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Definitions:

Sales Discounts

Reductions in the price of goods or services that are offered by sellers to incentivize prompt payment by buyers.

Net Sales

The revenue a company earns from its sales activities, minus the costs associated with returns, compensation for faulty or missing items, and permitted discounts.

Normal Credit Balance

The usual balance side of an account, considered a credit for liability, revenue, and equity accounts.

Sales Discounts

A reduction from the gross or total price of goods or services offered by the seller to the buyer under certain conditions.