Information on the Accounting Policies, Procedures, Calculations, and Transactions Underlying

question 198

Multiple Choice

Information on the accounting policies, procedures, calculations, and transactions underlying entries in the financial statements can be found on ________.

• A) the notes to the financial statements
• B) the statement of retained earnings
• C) the proxy statement
• D) the management discussion and analysis(MD&A)

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.