In the notes to financial statements,adequate disclosure would typically not include:
A)The accounting methods in use.
B)Lawsuits pending against the business.
C)Customers that account for 10 percent or more of the company's revenues.
D)The optimism of the CFO regarding future profits.

Question

Quizplus · Accepted Answer

The notes to financial statements should provide relevant information about the company's financial position and financial performance. While the accounting methods in use, lawsuits pending against the business, and customers that account for 10 percent or more of the company's revenues are all important pieces of information to disclose in the notes, the optimism of the CFO regarding future profits is subjective and may not be of significant value to investors or stakeholders. As such, it is typically not included in the notes to financial statements.

In the Notes to Financial Statements,adequate Disclosure Would Typically Not