Which of the Following Changes Would Normally Require Some Footnote

question 15

Multiple Choice

Which of the following changes would normally require some footnote disclosure?

• A)a correction of an error
• B)a change in reporting entity
• C)a change in accounting estimate
• D)all of these

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Definitions:

Current Assets

Current assets are assets that a company expects to convert into cash, sell, or consume within one year or within its operating cycle if longer than a year.

Vertical Analysis

A financial analysis method that compares various line items in a company's financial statements over a single period, expressing each item as a percentage of a base amount to assess relative size and structure.

Comparative Financial Statements

Financial statements that present financial information for different periods or dates side by side to facilitate comparison.

Corporations

Are legal entities that are separate and distinct from their owners. They have the ability to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.