Question

Which of the following statements about the notes to the financial statements are true? (Select all that apply.) Check All That Apply a.If information that impacts the company financially is not required to be shown on the statements themselves, that information does not need to be disclosed in the notes to the financial statements b.Only financial reports prepared by public companies require notes, c.The notes typically include a summary of significant accounting policies. d.Users often require additional details to facilitate their analysis of a company's financial statements.

Answer 1

The true statements about the notes to the financial statements are: (a) Information impacting the company financially needs to be disclosed in the notes, (c) The notes summarize significant accounting policies, and (d) Users require additional details for analysis.

Step-by-step explanation:

The correct statements about the notes to the financial statements are:

• a. Information that impacts the company financially but is not required to be shown on the statements themselves needs to be disclosed in the notes to the financial statements. This ensures transparency and provides additional details to users.
• c. The notes typically include a summary of significant accounting policies. This helps users understand the accounting methods and principles applied in preparing the financial statements.
• d. Users often require additional details to facilitate their analysis of a company's financial statements. The notes provide this additional information and help users make informed decisions.