Author Question: If the totals of the post-closing trial balance are not equal, the first step in tracking down the ... (Read 71 times)

geoffrey · **on:** Jul 6, 2018

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Explain why the notes are an integral part of the financial statements.

What will be an ideal response?

blfontai · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

False

Answer to Question 2

The notes must be read in order to understand the presentation on the face of the financial statements. Key information that can be found in the notes includes a summary of the firm's accounting policies and any changes that may have been made to those policies during the reporting period. Detail about particular accounts such as inventory, property, plant and equipment, investments, long-term debt, and equity accounts can be found in the notes. Information about acquisitions, divestitures, pension and stock option plans, leases, legal proceedings, income taxes, contingencies and commitments, quarterly results of operations and operating segments can also be found in the notes.