Question #39
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 13
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
Disclosures of accounting practices and basis are most likely to be made in which part of a firm's financial reports?
Answer Choices:
A. Footnotes
B. The audit report
Explanation
A number of important disclosures regarding a firm's accounting practices and the basis
on which income and expense are recognized are contained in the footnotes to the
financial statements.