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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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