The focus of APB Opinion No. 22 is on the disclosure of accounting policies. This information 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 main focus of APB Opinion No. 22 is on the disclosure of accounting policies to ensure that these policies are consistently applied from year to year. This information is important to financial statement readers in determining whether the financial statements are presented fairly and whether any changes in accounting policies have been properly disclosed. Therefore, choice B is the best answer. Choices A, C, and D are not directly related to the disclosure of accounting policies.

The Focus of APB Opinion No