Disclosure notes to a company's financial statements:
A) Are relatively unimportant facts that don't belong in the basic financial statements.
B) Document the source of financial statement facts, like literary footnotes.
C) Are an integral part of a company's financial statements.
D) Are irrelevant facts that are immaterial in amount.

Question

Quizplus · Accepted Answer

Disclosure notes provide additional information and explanations about items presented in the basic financial statements, and are therefore an integral part of a company's financial statements. They are required by accounting standards and regulations, and often contain important details about the company's accounting policies, contingencies, commitments, and other relevant matters. While they are not as prominent as the basic financial statements, disclosure notes are nevertheless important for investors, analysts, and other users of financial statements who need to understand the full context and implications of the financial results.

Disclosure Notes to a Company's Financial Statements