Question

Disclosure notes to a company's financial statements:

(A) Are an integral part of a company's financial statements.
(B) Are relatively unimportant facts that don't belong in the basic financial statements.
(C) Are irrelevant facts that are immaterial in amount.

Answer 1

Answer:

(A) Are an integral part of a company's financial statements.

Explanation:

The company financial statement involves income statement, statement of stockholder equity, balance sheet, and the cash flow statement

The disclosure notes contain the important facts and figures which are required to disclose it as it reveals the crucial information which might change the decision of the users and it cannot be shown elsewhere in the financial statement