Footnotes Question

Which of the following statements concerning the notes to the audited financial statements of a company is least accurate? Financial statement notes: A) provide information about accounting methods used by the company. B) contain information about contingent losses that may occur. C) include management’s assessment of the company’s operating performance and finanancial results. D) are audited.

B or D i’d pick D.


Your answer: C was correct! Management’s perspective on the company’s results is provided in the Management’s Discussion and Analysis supplement to the financial statements. Financial statement notes (footnotes) provide information about matters such as the company’s accounting methods and assumptions, contingencies, and acquisitions and disposals. Footnotes to the financial statements are audited. $50 BUCKS SAYS THIS Q IS ON TH EXAM FOOTNOTES ARE AUDITED, M, D, and A ARE NOT AUDITED, BUT ARE REQUIRED BY THE SEC

JESUS!! i thought mda was part of footnotes… I gotta stop sleeping!!



isn’t this one of the end of chapter questions?