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      Question

      Which of the following best explains the purpose of

      notes to accounts in financial statements?
      A To provide performance comparison with competitors Correct Answer Incorrect Answer
      B To reconcile cost and market value Correct Answer Incorrect Answer
      C To disclose accounting policies and contingent liabilities Correct Answer Incorrect Answer
      D To show prior period adjustments Correct Answer Incorrect Answer

      Solution

      Notes to accounts explain details such as accounting assumptions, contingencies, and off-balance sheet items.

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