To Meet the Needs of Full Disclosure, Companies Use Supplemental

question 86

Multiple Choice

To meet the needs of full disclosure, companies use supplemental information, including:

• A)Parenthetical comments or modifying comments placed on the face of the financial statements.
• B)Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation.
• C)Supplemental financial statements that report more detailed information than is shown in the primary financial statements.
• D)All of the above are correct.

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Definitions:

Price Index

A measurement that shows how the average price level of a selected set of goods and services has changed over time.

Vertical Axis

The y-axis in a graph or chart, which is typically used to represent the range of one of the variables in the data.

Phillips Curve

An economic theory that suggests an inverse relationship between the rate of inflation and the unemployment rate.

Aggregate Demand

The overall requirement for products and services in an economic setting, identified at a specific price level and time period.