Presentation and disclosure are important because acceptable financial reporting frameworks require that footnotes adequately describe the terms of notes payable outstanding and the assets pledged as collateral for the loans.Which assertion does this relate to?

Question

Quizplus · Accepted Answer

The concept of presentation and disclosure relates to the understandability assertion, as it is important that the notes to the financial statements provide sufficient information to allow the users of the financial statements to understand the terms of the notes payable and the assets pledged as collateral for the loans.

Presentation and Disclosure Are Important Because Acceptable Financial Reporting Frameworks