Which of the Following Is a True Statement

question 10

Multiple Choice

Which of the following is a true statement?

• A)Disclosure is concerned with information in the financial statements as well as information in the footnotes, management's discussion and analysis, financial and operating forecasts, and other supplementary communications.
• B)Disclosure is concerned with information in the financial statements only.
• C)Disclosure is concerned with information in the footnotes only.
• D)Disclosure is concerned with information in the financial statements and all supplementary communications except financial and operating forecasts.

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Definitions:

Variances

The differences between planned financial outcomes and the actual results, used in budgeting and accounting to track performance and plan future activities.

Cost of Goods Sold

The total cost associated with producing goods that have been sold during a specific period, including materials and labor.

Favourable Variances

Financial indicators that actual revenues are higher or costs are lower than what was originally planned or budgeted.

Standard Costs

Predetermined costs for manufacturing a product or providing a service, used as benchmarks for measuring performance.