Which of the following is true about the format of financial reports?
A)All multinational corporations report Sales Revenue on their income statements.
B)Gross margin is a standard line item on income statements throughout the world.
C)Notes to financial statements may clarify international differences in statement formats.
D)In all countries, total assets are shown on the left side of the balance sheet and liabilities and owners' equity are shown on the right side.

Question

Quizplus · Accepted Answer

Notes to financial statements may include additional information, explanations, or clarifications about the financial report format, and may help in understanding international differences. Option A and B are incorrect, as not all corporations may use the same format for their income statements, and gross margin may not be a standard line item everywhere. Option D is also incorrect, as the format of a balance sheet may vary depending on the country and accounting standards used.

Which of the Following Is True About the Format of Financial