Which Accounting Convention Requires a Note to the Financial Statements

question 17

Multiple Choice

Which accounting convention requires a note to the financial statements explaining the company's method of revenue recognition?

• A)Comparability and consistency
• B)Materiality
• C)Conservatism
• D)Full disclosure

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Definitions:

Targeted Market Segment

A specific group of potential customers identified by marketers to focus their promotional strategies on, based on shared characteristics like demographics or interests.

Mixed Branding

A strategy where a company markets products under its own brand name(s) and that of others, often to target different segments or for co-branding purposes.

Wholesaler

A person or company that sells goods in large quantities at lower prices, typically to retailers for resale to the public.

Retailer

An entity or individual that provides products directly to buyers, instead of selling them through a wholesaler or supplier who typically distribute their goods to other businesses.