Information about which accounting principles were used by the firm are included in the:
A)balance sheet
B)footnotes
C)management discussion on annual report
D)none of the above

Question

Quizplus · Accepted Answer

Information about accounting principles used by the firm is typically included in the footnotes of financial statements. The balance sheet provides information about a company's assets, liabilities, and equity at a specific point in time, but does not typically provide information about specific accounting principles used. The management discussion in an annual report may provide some information about accounting policies and their impact on the financial statements, but this is not always the case.

Information About Which Accounting Principles Were Used by the Firm