CFA Level I · CFA Level I Exam · Introduction to Financial Statement Analysis
An analyst reviews the notes to the financial statements of a company. The notes are most likely to provide information about the company's:
The notes most likely provide information on accounting policies and significant estimates and judgments used in preparing the statements. They do not contain guaranteed future earnings from management or the auditor's detailed work papers, which are not part of the published financial statements.
- Afuture quarterly earnings guaranteed by management
- Baccounting policies and significant estimates usedCorrect
- Cexternal auditor's detailed work papers
Explanation
Notes disclose accounting policies, estimates and judgments, and details behind line items. They do not guarantee future earnings, and auditor work papers are not published.
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