Information about which accounting principles were used by the firm are included in the:
A) balance sheet
B) footnotes to the financial statements
C) management discussion on annual report
D) income statement

Question

Quizplus · Accepted Answer

The footnotes to the financial statements typically provide information about the accounting principles or methods used by the firm. The balance sheet and income statement show the financial results and positions but do not necessarily provide information about the accounting principles used. The management discussion in the annual report may provide additional information, but it is not solely dedicated to accounting principles.

Information About Which Accounting Principles Were Used by the Firm