Footnotes Are

question 59

Multiple Choice

Footnotes are

• A)included in the audit report.
• B)an integral part of financial statement information.
• C)an appendix to the letter from corporate management.
• D)at the bottom of the report of the independent auditors.
• E)explanatory information in the statement of management's responsibility for preparation of financial statements.

---

Definitions:

Cost Method

An accounting approach used for investments, wherein the investment is recorded at cost and adjusted only for dividends received, impairments, or changes in fair value.

Consolidated Income Statement

A financial statement that presents the combined financial results of a parent company and its subsidiaries as one single entity.

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given fiscal period.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and earnings from the investment are recognized only when dividends are received.