Assuming that none of the following have been disclosed in the financial statements, the most appropriate item for footnote disclosure is the
A) Collection of all receivables subsequent to year end
B) Revision of employees' pension plan
C) Retirement of president of company and election of new president
D) Material decrease in the advertising budget for the coming year and its anticipated effect upon income

Question

Quizplus · Accepted Answer

The revision of employees' pension plan is the most appropriate item for footnote disclosure because it directly affects the financial position and obligations of the company, potentially impacting future cash flows and liabilities. Changes in pension plans can have significant financial implications, thus requiring disclosure to inform users of the financial statements about the nature and effect of these changes.

Assuming That None of the Following Have Been Disclosed in the Financial