The disclosure of accounting policies
A) may describe policies that are peculiar to the reporting company's industry.
B) should not appear in the notes to the financial statements.
C) should not describe unusual or innovative applications of GAAP.
D) is encouraged but not required.

Question

Quizplus · Accepted Answer

The disclosure of accounting policies may describe policies that are peculiar to the reporting company's industry. This allows for transparency and helps users of the financial statements understand how the company is accounting for its transactions. The other options are incorrect - accounting policies should appear in the notes to the financial statements, may describe unusual or innovative applications of GAAP, and are actually required under GAAP.

The Disclosure of Accounting Policies