The Notes to the Accounts That Relate to Income and Expense

question 34

Multiple Choice

The notes to the accounts that relate to income and expense should include:

• A) Only commentary on issues covered by AASB 101.
• B) A variety of information that incorporates the disclosures required in all standards related to income and expenses.
• C) Only information that would have resulted in a different profit or loss figure if it had been included on the face of the statement.
• D) Only items that were deemed non-material when selecting items to place on the face of the accounts.
• E) None of the given answers.

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Definitions:

Cash Short And Over

An accounting term referring to a discrepancy between the amounts of cash available at the end of a period and the expected amount, which could be more (over) or less (short).

Office Supplies

Items such as pens, paper, staplers, and other materials used in an office setting for daily operations and not directly associated with the manufacturing process.

Bank Reconciliation

A process used to verify the accuracy of bank statements with a company's financial records, identifying any discrepancies.

Checks Outstanding

Checks that have been written and recorded in the check issuer's accounting system but have not yet been cashed or cleared by the bank.