Which of the following is a required disclosure for a company reporting under US GAAP?

Answer options:

Summary of Significant Accounting Policies

Forecast of next year's earnings

Names of all shareholders

Details of every individual transaction > $1,000

How to approach this question

ASC 235 requires a Summary of Significant Accounting Policies (measurement bases, depreciation methods, inventory methods, etc.).

Full Answer

A.Summary of Significant Accounting Policies✓ Correct

The Summary of Significant Accounting Policies is a mandatory disclosure describing the accounting principles followed and methods of applying those principles (e.g., basis of consolidation, depreciation methods, inventory pricing).

Common mistakes

Confusing management discussion (MD&A) with financial statement notes.

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Practice the full CPA FAR Practice Exam 5

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