Final answer:
Accounting policies disclosed in the notes to the financial statements typically include the cost flow assumption used, the depreciation methods used, and significant estimates made, but not significant inventory purchasing policies.
Step-by-step explanation:
Accounting policies disclosed in the notes to the financial statements typically include the cost flow assumption used, the depreciation methods used, and significant estimates made. However, they do not typically include significant inventory purchasing policies.
The cost flow assumption refers to the method used to determine the cost of inventory sold, such as FIFO (First-In-First-Out) or LIFO (Last-In-First-Out). Depreciation methods refer to how the company allocates the cost of a tangible asset over its useful life.
Significant estimates made relate to judgments and assumptions made by management when preparing the financial statements, such as estimates for bad debts or the useful life of an asset. On the other hand, significant inventory purchasing policies, such as the frequency or suppliers of inventory purchases, are not typically disclosed as accounting policies.