Notes to the Financial Statements Flashcards
1
Q
What are some basic note disclosures?
A
- Summary of significant account policies
- Related-party transactions
- Liability disclosures
- Capital structure
- Errors and irregularities
- Illegal facts
2
Q
What is in management discussion and analysis:
A
- Narrative about operations, liquidity, and capital resources.
- Risks and Uncertainties
- Not audited but reviewed by the auditors
- Forward looking analysis
3
Q
Define: Purchasing Power Gain
A
A purchase power gain will result from holding monetary assets during deflationary times or having monetary liabilities during inflationary times
4
Q
Define Constant Dollars:
A
Nonmonetary items are restated to the current price level to reflect an adjustment for inflation and allow comparisons using dollars wit the same purchasing power.
