Which of the Following Is True About Financial Statement Disclosure

question 36

Multiple Choice

Which of the following is true about financial statement disclosure?

• A)When account balances are aggregated, the analyst has the greatest amount of information.
• B)The amount and types of financial statement disclosure vary widely from one country to another.
• C)The concept of full disclosure has been universally adopted around the world.
• D)An analyst can always disaggregate financial statement disclosures to obtain needed information.

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Definitions:

Debt-To-Equity Ratio

A financial ratio that assesses how a company's assets are financed through debt and equity.

Financing Structure

The composition of a company’s various sources of funds, including debt and equity financing.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense on the income statement.

Bond Issue

The process by which a government or corporation raises funds by selling bonds to investors, which are to be repaid with interest at a future date.