Footnotes to a company's financial statements are used to
A)More fully explain certain items in the financial statements.
B)Reflect financial notes personalized by the company's executive team.
C)Show the detail of salaries of every employee.
D)Justify fraudulent business practices.

Question

Quizplus · Accepted Answer

Footnotes are used to provide additional information and explanations to certain items in the financial statements, such as significant accounting policies, contingencies, and changes in accounting methods. They are not used to reflect personalized financial notes by the executive team or justify fraudulent practices, and they do not provide detail on individual employee salaries.

Footnotes to a Company's Financial Statements Are Used to