the explanatory notes to financial statements a should be referred to if more than a 667764

The explanatory notes to financial statementsa. should be referred to if more than a cursory, and perhaps misleading, impression of a firm’s financial position and its results of operations is to be achieved.b. are used by many entities to hide information from the reader of financial statements by including in the explanatory notes information that should be shown in detail on the financial statements themselves.

Recognition of revenue in accrual accounting requiresa. only that the amount of cash to be received from the sale of a product or service be knownb. that the revenue be realized or realizable, and earnedc. only that a product be delivered or a service be performed

Gains differ from revenues because gainsa. aren’t a result of the entity’s ongoing, central operations.b. don’t involve any offsetting costs or expensesc. don’t have to be realized