Footnotes to Financial Statements Should Not Be Used to

question 29

Multiple Choice

Footnotes to financial statements should not be used to

• A) Describe the nature and effect of a change in accounting principles
• B) Identify substantial differences between book and tax income
• C) Correct an improper financial statement presentation
• D) Indicate bases for valuing assets

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Definitions:

Job Conditions

The working environment and all surrounding factors impacting an employee’s performance, safety, and comfort at the job.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Finances

The management of money and other assets, including budgeting, saving, investing, and spending.

Cohabitation Rates

The statistical measure or frequency of couples living together without being legally married.