The disclosure of accounting policies, is important to financial statement readers in determining
A)net income for the year.
B)whether accounting policies are consistently applied from year to year.
C)the value of obsolete items included in ending inventory.
D)whether the working capital position is adequate for future operations.

Question

Quizplus · Accepted Answer

The disclosure of accounting policies helps users understand if the same accounting methods are applied consistently over time, which is crucial for comparing financial statements across different periods.

The Disclosure of Accounting Policies, Is Important to Financial Statement