To meet the needs of full disclosure, companies use supplemental information, including:
A)Parenthetical comments or modifying comments placed on the face of the financial statements.
B)Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation.
C)Supplemental financial statements that report more detailed information than is shown in the primary financial statements.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options listed are correct ways in which companies use supplemental information to meet the needs of full disclosure. Parenthetical comments and modifying comments provide additional information on the face of the financial statements, disclosure notes offer further insights about company operations and financial information, and supplemental financial statements include more detailed information that is not shown in the primary financial statements. Therefore, the best choice is D.

To Meet the Needs of Full Disclosure, Companies Use Supplemental