Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?
A)Report of Independent Accountants
B)Notes to the Financial Statements
C)Management's Discussion and Analysis
D)Balance sheet

Question

Quizplus · Accepted Answer

The supplementary disclosures required by GAAP are typically found in the Notes to the Financial Statements. This section provides additional information about specific accounting treatments and helps readers understand how certain amounts were calculated and reported in the financial statements. The Report of Independent Accountants provides the auditor's opinion on the fairness of the financial statements, while the Management's Discussion and Analysis and Balance Sheet provide broader overviews of the company's financial performance and position.

Supplementary Disclosures Required by GAAP That Help Explain Detail Behind