Which of the following is an example of a significant accounting policy that would be explained in the notes to the financial statements?The disclosure of the uncertain, potential outcome of a lawsuitThe disclosure of quarterly financial informationThe method used to estimate depreciation on a piece of equipmentThe description of all the individual items that comprise notes payable

Which of the following does not require disclosure in an entity’s accounting policy note?Group of answer choicesthe fact that the entity has adopted the accruals basis of accountingthe measurement bases used in the preparation of the financial statementsthe financial reporting framework applied in the preparation of the financial statementsa description of the key accounting policies of the entity

What are accounting choices applied to the measurement and recognition of financial statement elements referred to as? A. Estimates of best practice B. Accounting policies C. Accounting estimates D. Management policies

What are your views on having such extensive notes in order to clarify the financial report items? Does it assist in the readability and ease of interpretation of the reports?

Go through the Company’s Financial Statement presentation and the items covered in different statements.Presentation of Financial Statements and policy informationHow Company is presenting the Financial Statements and understand the Note no. given in front of different items mentioned in financial statements.

. Indicate whether following statements relating to the financial accounting are True or False.True/FalseA It provides information for external party '''''''''''''''''''''''''''''''''''''''B It base estimated information '''''''''''''''''''''''''''''''''''''''C It present information for an accounting period '''''''''''''''''''''''''''''''''''''''D Sri Lanka Accounting standards are not used '''''''''''''''''''''''''''''''''''''''32' State whether the following tasks can be included under management accountingTask Yes/ NoA Preparing general purpose final financial statements '''''''''''''''''''''''''''''''''''''''B Preparing overhead analysis sheets '''''''''''''''''''''''''''''''''''''''C Providing information of marginal costing '''''''''''''''''''''''''''''''''''''''D Analyzing profitability of a firm by using ratios '''''''''''''''''''''''''''''''''''''''33' State the most suitable accounting concept for followingSituation ConceptA Categorizing liabilities as current and non – current in thestatement of financial position '''''''''''''''''''''''''''''''''''''''B Recognizing payable expenses in the statement offinancial position '''''''''''''''''''''''''''''''''''''''C Recording the most lowest value form the cost and netrealizable value of the closing stock. '''''''''''''''''''''''''''''''''''''''D Considering the purchase a stapler machine as an expensein the income statement '''''''''''''''''''''''''''''''''''''''34' State whether following statements are considered as the components of the general purpose finalfinancial statements.Yes / NoA Statement of Financial position '''''''''''''''''''''''''''''''''''''''B Directors reports '''''''''''''''''''''''''''''''''''''''C Notes in the F.F.S. '''''''''''''''''''''''''''''''''''''''D Bank reconciliation statement '''''''''''''''''''''''''''''''''''''''