According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to...
According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to financial statement readers in determining
a. net income for the year.
b. whether accounting policies are consistently applied from year to year.
c. the value of obsolete items included in ending inventory.
d. whether the working capital position is adequate for future operations.
Homework Answers
Correct option is: b. whether the accounting policies are consistently applied from year to year
As per GAAP accounting policies adopted or if there is any change in the policies adopted shall be disclosed so that the readers of financial statements shall determine whether the accounting policies are consistently applied from year to year
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According to GAAP, the disclosure of
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