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Statement l: In making a disclosure, the entity is required to disclose 2. budget information or forecast to disclose in order to help users of financial statements understand about the future and other sources of estimation. Statement 2: When an entity has significant foreign operations or transactions in foreign currencies, users would expect disclosure of accounting policies for the recognition of foreign exchange gains and losses. а. Only the first statement is correct. b. Only the second statenment is correct. Both statements are correct. с. d. Neither of the statements is correct.

Statement l: In making a disclosure, the entity is required to disclose 2. budget information or forecast to disclose in order to help users of financial statements understand about the future and other sources of estimation. Statement 2: When an entity has significant foreign operations or transactions in foreign currencies, users would expect disclosure of accounting policies for the recognition of foreign exchange gains and losses. а. Only the first statement is correct. b. Only the second statenment is correct. Both statements are correct. с. d. Neither of the statements is correct.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In making a disclosure, the entity is required to disclose budget information or forecast to disclose in order to 2. Statement 1: help users of financial statements understand about the future and other sources of estimation. Statement 2: When an entity has significant foreign operations or transactions in foreign currencies, users would expect disclosure of accounting policies for the recognition of foreign exchange gains and losses. а. Only the first statement is correct. b. Only the second statement is correct. С. Both statements are correct. d. Neither of the statements is correct.
Transcribed Image Text:In making a disclosure, the entity is required to disclose budget information or forecast to disclose in order to 2. Statement 1: help users of financial statements understand about the future and other sources of estimation. Statement 2: When an entity has significant foreign operations or transactions in foreign currencies, users would expect disclosure of accounting policies for the recognition of foreign exchange gains and losses. а. Only the first statement is correct. b. Only the second statement is correct. С. Both statements are correct. d. Neither of the statements is correct.
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