Notes and Other Financial Statement Information A classmate laments, “Why all the notes, significant accounting policies, and supplemental information? Why don’t companies just tell us what the real income and assets are without all the extra complicated information?”

a. Why do companies use notes and supplemental information?

b. Identify an item that would be disclosed in the notes and an item that would be disclosed in supplemental information. Indicate why they would be important to a potential investor.