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The Purpose of Notes on Financial Statements - Video Lesson

Notes To The Financial Statements Definition Investopedia

The last type of note to the financial statements lists any claims that creditors may have against a company. The Purpose of Notes Now that you know what the notes to the financial statements are, let's talk about the purpose of these notes. There are ten common items that may appear in a company's notes to the financial statements. The first thing that a company usually wants people to know is what they do, or what they make. The ninth type of note that may be found on the financial statements lists any contingent liabilities that may exist. A contingent liability is a liability that has not yet occurred, but the conditions are favorable for it to occur in the near future. Because the financial statements are relied upon heavily by potential creditors and investors, as well as current creditors and investors, the Financial Accounting Standards Board (FASB ) wanted to ensure that all interested individuals have reliable information on company performance.

Subsequent events are considered either recognized or unrecognized. Recognized events require changes to be made to the financial statements. Unrecognized events do not require changes to be made. Writing off a large debt due to a company filing bankruptcy is a recognized event.

Notes financial statement
The sixth thing that the notes may tell users is about any intangibles, or items that have no physical form, that may appear on the balance sheet. Notes to the financial statements may also tell users whether or not the financial statements are consolidated statements.
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Later that year, Britain granted India its independence but split the country into two dominions: India and Pakistan. Gandhi strongly opposed Partition, but he agreed to it in hopes that after independence Hindus and Muslims could achieve peace internally. Cesar Chavez, Aung San Suu Kyi.


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(b) The institution maintains specific written standards for student admissions for each educational program and those standards are related to the particular educational program. (c) The facilities, instructional equipment, and materials are sufficient to enable students to achieve the educational program s goals. Bowtech has.


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