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QUIZ 2 ACCT 540 FINANCIAL ACCOUNTING THEORY
Spring 2019
DIRECTIONS:
1. ANSWER EACH QUESTION IN A FEW SENTENCES (ABOUT A PARAGRAPH)
2. YOU MAY COLLABORATE WITH CLASSMATES
3. EACH PERSON NEEDS TO SUBMIT AN ANSWER
4. NOTE: Please answer in your own words. Do not simply copy the information from the Concepts
Statement.
5. Bring your answers to class and turn in at the start of class on Tuesday February 19.
Question 1: What is the purpose of the notes to the financial statements?
Question 2: Generally, forward-looking items are not disclosed. What are the exceptions to this?
Question 3: What is the difference between recognition and disclosure?
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Question 1:
Notes to the financial statements provide extra information about a company's financial position
and how it operates in the industry, therefore a significant part of the financ...
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