The stock of Gates, Inc., is widely held, and the company is under the jurisdiction of the Securities and Exchange Commission. In the annual report, information about the significant accounting policies adopted by Gates should be
A) Omitted because it tends to confuse users of the report
B) Included as an integral part of the financial statements
C) Presented as supplementary information
D) Omitted because all policies must comply with the regulations of the Securities and Exchange Commission

Question

Quizplus · Accepted Answer

The significant accounting policies adopted by Gates should be included as an integral part of the financial statements. This information is necessary to understand the financial statements and make informed decisions. The SEC requires companies to disclose their significant accounting policies in their annual reports.

The Stock of Gates, Inc